Oman’s Council of Ministers orders freezing of fuel prices

Oman’s Council of Ministers has ordered that the cost of M91 fuel be fixed at February prices until the government can implement a system to help those struggling with price increases.

The decision comes as trade unionists and others in the country urge the government to introduce a fuel stamp system to help low income families adversely affected by price increases.

Read: Oman trade unionists urge government to introduce fuel stamps

“As part of ongoing government attention accorded to segments of citizens affected by the fluctuation of international oil prices, the Council of Ministers instructed the committee tasked with following up oil prices to finalise the mechanisms and executive procedures aimed to support ‘entitled’ segments of citizens affected by the rise in international oil prices, provided the price of petrol grade M91 approved during this month (February 2017) shall be stabilised till such a time that the above-mentioned mechanism is approved,” according to a statement from the council carried by Oman News Agency.

Earlier this week, members of the country’s Shura Council called for a price ceiling or annual fixed price for fuel after February increases saw diesel cross the OMR0.200 ($0.52) mark for the first time and M91 fuel reach OMR0.196 ($0.51).

Read: Oman Shura members call for fixed annual fuel price

Oman was one of several Gulf countries to reduce fuel subsidies last year.

Similarly to the UAE’s system, the country changes prices on a monthly basis in line with global oil prices, which have increased to around $55 a barrel following last year’s production cap deal between OPEC and non-OPEC countries.

Read: Bahrain, Oman raise domestic fuel prices