Production of the M-91 grade of motor fuel (gasoline) jumped 21 per cent to 23K bbls/day in 2017, up from 18K bbls/day a year earlier, underscoring a dramatic shift to this relatively less expensive grade of motor fuel versus the pricier M-95 version.
According to figures released by Orpic, the nation’s sole refiner and producer of petroleum fuels, the increase in M-91 output comes on the back of a whopping 260 per cent jump in output from around 5k bbls/day in 2015 to 18K bbls/day in 2016. That upsurge was driven by two factors: the removal of subsidy on motor fuels, and the Ministry of Oil and Gas’ decision to introduce the M-91 version in place of the longstanding M-90 grade of motor fuel.
Under fuel tariffs released for the month of April, M-91 is being dispensed at local fuel pumps at the rate of 205 baisas per litre versus 216 baisas per litre for the M-95 version. The premium M-98 grade sells 266 baisas per litre, while diesel commands a rate of 238 baisas per litre.
In comparison, corresponding output levels of M-91 fuel (and its erstwhile M-90 version) have averaged between 4K-5K bbls/day during the 2012-2015. This is the period when motorists enjoyed a substantial subsidy on motor fuel.
Production of the M-95 grade of gasoline, on the other hand, slumped 23 per cent to 50K bbls/day in 2017, down from 65K bbls/day a year earlier, according to Orpic figures. Although a tad pricier that M-91, M-95 remains the fuel of choice for motorists judging by the higher output of this version. Production of M-95 has been on the uptrend from 51K bbls/day in 2012 to a high of 65K bbls/day in 2016 before last year’s decline.
Also on the decline is the production of diesel, which dipped to 45K bbls/day in 2017 from 49K bbls/day a year earlier, according to Orpic. This compares with rising trend during the previous years from 42K bbls/day in 2012 to a high of 52K bbls/day in 2015.
Production of jet fuel also rose slightly last year to 14K bbls/day, up from 13K bbls/day in 2016, the state-owned refiner added.
Oman Observer is now on the WhatsApp channel. Click here
