MUSCAT
Diesel prices hit highest for the first time in Oman’s history after it crossed the 200 baisa (Dh1.9) a litre. The Ministry of Oil and Gas announced the fuel prices for February on Tuesday. Diesel will cost 205 baisa per litre, compared to 195 baisa in January.
M91 will cost 186 baisas, compared to 176 baisas last month, while M95 will be 196 baisas, up from 186 baisas in January.
Before reviewing the fuel prices in January, 2016, the diesel price cost 146 baisas a litre, while M95 cost 120 baisas.
Oman introduced M91 fuel in November, M91, a new type of petrol which has Octane level between M90 and M95.
Petrol stations in Oman had witnessed a huge rush and crowds as many people tried to buy fuel before the new, revised prices came into effect at midnight on Tuesday. Some stations ran out of fuel due to the increase in demand.
Both Omanis and expatriates waited in long queues to buy fuel, which resulted in some traffic snarls nationwide.
Ahmad Al Beloushi, Mutrah province resident, said that it took him at least one hour to buy fuel. “It was a long queue, So I had to wait for one hour to buy fuel at one of Mutrah petrol stations,” he said.
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. Mohammad Al Rashdi, an economic expert, said that soaring diesel and fuel prices will increase the cost of living, stressing that the increase would hit every consumer.
Meanwhile, Omanis have launched a hashtag on Twitter entitled “Oman Fuel becomes more expensive,” which is the top trending hashtag in the country, with hundreds of tweets. Many of them called to reduce the fuel prices as many cannot afford to buy fuel. “The authorities concerned should at least develop the public transport as alternatives for us like buses and metros, So We can use them for commuting amid the fuel price hike,” one of users said.
Another user, Mohammad Rashid, said that the Omani government should provide a monthly allowance for the low-income families to help them buy fuel.
“Before reviewing the fuel prices in mid-January last year, I spent only 20 riyals per month to buy fuel, Now, I have to pay at least 45 riyals,” said Naser Al Mashali.
Mwasalat, a state-owned National Transport Company, affirmed on Tuesday that it will not raise its fees to compensate for the fuel cost this month. “There is no plan to increase the bus fares due to the hike, Mwasalat said in a tweet.
Oman is following in the footsteps of all other Gulf states, which increased fuel prices last year amid a slump in oil prices.
Subsidies on petroleum products, including petrol and diesel, are estimated to have cost Oman 900 million riyals (Dh8.56 billion) in 2015, compared to 840 million riyals in 2014.
The 2017 General Budget, focuses on austerity measures and spending cuts owing to the plunge in oil prices. Government spending this year is projected to total 11.7 billion riyals (Dh111.3 billion) and revenues 8.7 billion riyals, which would result in a deficit of 3 billion riyals.
Oman posted a budget deficit of 5.3 billion riyals in 2016, as revenues declined by more than 30 per cent. The actual deficit has turned out to be much bigger than expected this year; it was 4.8 billion riyals in the first 10 months of 2016, according to official data.
The country expects 4.5 billion riyals from crude oil, 1.6 billion riyals from natural gas and the remaining from other sources, according to the figures released in the official gazette recently.
