Oil subsidy bill rises as steps taken to provide relief to citizens

Muscat: The government’s subsidy outgo for oil products for the first quarter 2022 increased to OMR67.3 million compared to OMR7.6 million during the corresponding period, last year, registering an increase of 785 percent.

The increase comes within the attention and care of the government aimed to mitigate the economic burden on citizens and in accordance with the Royal Directives of His Majesty Sultan Haitham Bin Tarik.

The Sultanate fixed, last year, the prices of fuel for vehicles in accordance with the rate of October 2021 aximum to end of 2022. It also provided that the government shall bear the differences resulting from any increase that occur on oil prices.

The fuel prices for Mogas 91 has been fixed at OMR0.29 per litre maximum, Mogas 95 at OMR0.239 and diesel at OMR0.258 per litre.

In the General Budget of the State for 2022, the government allocated OMR35 million as subsidy for oil products, however, the increase of oil price above USD 100 per barrel at the time the government fixed the prices of fuel for vehicles, led to the increase in the amounts allocated as subsidy for oil products and the average oil prices in the General Budget of the State for 2022 is estimated at USD 50 per barrel.

Oman Oil’s average price during the first quarter 2022 increased to USD79 per barrel against USD49.5 per barrel, an increase of 59.5 percent against the corresponding period of last year.