• January 19, 2018
    Last updated 8 minutes ago

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Diesel fuel prices spike in Oman

Subsidies on petroleum products estimated to have cost Oman 900 million rial in 2015

By Fahad Al Mukrashi, Special to Gulf News
15:00 January 2, 2018

Muscat: Diesel prices hit a high as they touched 230 baisa (Dh2.19) a litre. The Ministry of Oil and Gas announced the new fuel prices for January on Sunday. In December prices stood at 219 baisa per litre.

M91 will cost 199 baisa per litre, compared to 186 baisa per litre last month, while M95 will be 213 baisa per litre, up from 207 baisa per litre in December,

Before reviewing the fuel prices in January 2016, the price of diesel was at 146 baisa a litre, while M95 cost 120 baisa.

Oman introduced M91 fuel in November 2016. M91 type of petrol has an Octane level between M90 and M95.

Oman is following in the footsteps of all other Gulf states, which increased fuel prices in 2016 amid a slump in oil prices.

Subsidies on petroleum products, including petrol and diesel, were estimated to have cost Oman 900 million rial in 2015, compared to 840 million rial in 2014.

Both Omanis and expatriates waited in long queues to buy fuel, which resulted in some traffic snarls nationwide.

Economic experts believe that the hike in diesel prices will hit the consumers as many factories run by diesel as well as trucks that transport goods.

Meanwhile, more than 120,000 Omanis have been applied for the new national fuel subsidy scheme, according to the National Subsidy System.

The number of applicants is expected to reach 200,000 in the coming days.

More than 50,000 citizens have already received fuel subsidy cards, available at petrol stations nationwide.

In December, Oman’s government announced plans to introduce a new fuel subsidy scheme for low-income Omanis, starting from January.

The government’s decision aims to ensure the welfare of citizens. As per this mechanism, Omani citizens who meet eligibility requirements will get 200 litres per month of M91 petrol at a cost of not more than 180 baisa per litre.