The start of another month means revised petrol prices in the sultanate. The government of Oman is adjusting the market price on a monthly basis after deregulation, but a strange thing is happening. The fuel prices are dropping as the price of oil is still very low.
Oil prices overall are on a slow upward trend when looking at the February oil charts for the whole month. If this slow upward trend continues, we might see an increase in prices at the pump next month, albeit a slight increase.
What is most interesting is the price of diesel fuel over the course of the last two months. Deregulation went into effect January 15, 2016 when we saw the price increase about 10% per liter to 16o baiza. However, just a few weeks later on February 1, 2016 the price was adjusted back to 146 baiza per liter and hasn’t been changed this month.
Does this mean diesel fuel is more stable in price, or is the government slightly subsidizing and stabilizing this fuel? It’s not clear, but the result means we are not seeing an increase in price on foodstuff or household goods, which was a major concern for many in the sultanate.
A final thought to ponder about the revised and deregulated petrol prices is this: at what oil price will the government return to a subsidized petrol? In my opinion, unsubsidized fuel selling at large per barrel prices could be too expensive for the local market to handle without locals making big changes in their driving habits and vehicle choices. Something that would be hard to do when one has come to expect a low petrol price at the pump; me and my 90s Land Cruiser come first to mind.
At the end of the day, the price of petrol in Oman is very low compared to other nations, so as a traveler you will probably be thinking, “what, this is expensive?” Yup, we
like liked our subsidized fuel in Oman.
How will you cope with the revised petrol prices in Oman? Leave me a comment below.
|Fuel Grade||Octane||Subsidized price/liter OMR||Jan 2016 price/liter OMR||Feb 2016 price/liter OMR||Mar 2016 price/liter OMR||Apr 2016 price/liter OMR||% Increase|