Oman’s Oil and Gas Ministry has announced new petrol and diesel prices on Monday, which will take effect starting from tomorrow, January 15.
The cost of super grade petrol will rise by 33% to 160 baiza per litre, up from the current price of 120 baiza, according to the Ministry of Oil and Gas official Twitter account.
The regular grade petrol will rise by 23% to 140 baiza per litre, up from 114 baiza per litre. Diesel will rise by 9.6% to 160 baiza per litre; the current price is 146 baiza per litre.
The new fuel prices follow are a result of government spending cuts and tax hikes announced in December and approved by Oman’s cabinet.
The country is trying to find ways to increase revenue following the global rout in oil prices, which caused a $11.70bn deficit in 2015. In July 2014, oil per barrel was selling at $115, but today’s prices are below $35.
Subsidies on petroleum products, including petrol and diesel, are estimated to have cost Oman an estimated $2.34bn in 2015, compared to $2.18bn in 2014.
Petrol stations are expecting extra traffic today, the day before the new prices take effect.
