Muscat: Oman’s elected Shura Council has yet to receive a response from the Council of Ministers about a proposal that suggests the introduction of fuel subsidies for segments of society who have been most affected by the fuel price hike, Gulf News has learnt.
In February, the council pushed for a proposal to allocate 200 litres of free fuel to low-income Omani families on a monthly basis.
Omanis who make less than 600 riyals a month and are on social security would qualify for fuel subsidies under the proposal.
Speaking to Gulf News, Shura council member Hilal Al Sarmi from the Seeb province, said the special committee appointed to address the implications of the economic crisis was lobbying the Omani government to quickly approve the proposal.
“We also recommended the introduction of alternative means of transportation to off-set the fuel price hike,” he said. The Ministry of Oil and Gas slightly lowered diesel prices for May to 204 baisas per litre.
The price was 205 baisa per litre in April — the highest ever in Oman.
But fuel prices have increased in May as M91 fuel now costs 186 baisas per litre, compared to 180 baisas last month, while M95 costs 199 baisas per litre, compared to 192 baisas in April.
Before the price hike, diesel averaged at 146 baisas per litre and M95 cost 120 baisas per litre.
In February, the Council of Ministers froze the price of M91 fuel until the government comes up with an alternative mechanism to help those who have been affected by the price hike. The General Federation of Oman Trade Unions (GFOTU) has asked the government to consider fuel coupons for those who could not afford the high prices of the fuel.
According to the GFOTU, 60 per cent of Omani workers in the private sector earn less than 400 riyals per month and around 84,644 Omanis are currently living on social welfare payments.
In 2015, the government spent around 131 million riyals on welfare payments.
The 2017 general budget of Oman included major spending cuts due to the plunge in oil prices.
The government spending this year is estimated at 11.7 billion riyals (Dh111.3 billion) and predicted revenue is at 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 revenue declined by more than 30 per cent.
The actual deficit has turned out to be much higher than expected; it was 4.8 billion riyals in the first 10 months of 2016, according to official data.
