So, it finally happened. Petrol prices are increasing January 15, 2016, and as much as I don’t want to pay more, it’s probably the best for the country. How is this going to effect you as a traveler?
As a traveler on a short visit you won’t find a huge difference, and the price/liter is still cheaper than in your home country for sure. Let’s have a look to see how much the increase will be:
|Petrol||Octane||Old price/liter||New price/liter||% Increase|
As a resident, this will have a slightly bigger effect on me. Luckily fuel prices were so low to begin with, and they will remain low compared to the rest of the world. So, shifting spending habits, driving less around town, and minding the bills could result in remaining within the same budget as before the price hike.
The real problem comes with long weekend excursions, and the great distance many places are from Muscat.
So, how come fuel prices were so low to begin with in Oman?
Government subsidies. The fuel prices were fixed at all stations below free market price, and the government would pick up the cost of the balance. With about 80% of the government income coming from oil sales, and the price of a barrel of oil down to about $33.00 currently, it has become time for citizens and residents to do the needful and pitch in.
I still find it strange to be talking about higher prices at the pump when oil has dropped 70% recently. Welcome to Oman.