An official in Oman have confirmed that the country’s M91 fuel price is still capped at 186 baisas a litre after an increase in prices for May, according to reports
Times of Oman cited Salim Al Aufi, undersecretary at the Ministry of Oil and Gas as confirming M91 will not rise above the cap for the foreseeable future.
This followed an increase in the price from 180 baisas to 186 for May, which led to speculation the cap had ended.
“First, it was not a freeze but ‘capping’ at the February monthly price for M91 only. The February pump price for M91 was 186 baisas per litre,” Aufi was quoted as saying.
“In April, because the market price was low, we honoured the market price and lowered the price to 180 baisas per litre, then for May we again fixed the price to 186 baisas per litre, as the true market price is slightly higher.”
Oman’s Council of Ministers ordered the price freeze in February amid concerns that rising prices were negatively impacting low earners and increasing the cost of goods.
The country is now exploring ways to compensate drivers for rising prices.
Oman like other Gulf states reduced fuel subsidies last year by linking prices to global oil rates.
At the time this had little impact on drivers as global oil prices were at an all time low of below $30 a barrel.
Since then prices have risen steadily to more than $50 a barrel resulting in a significant increase in fuel costs.