The fuel prices for October has seen one of the steepest hikes this year. On an average, the price has been increased by nearly 10 baisa by the Ministry of Oil and Gas on all types of fuel sold in the country.
M-95 fuel will cost 205 baisa against 196 baisa in September. This is the first time that M-95 will be crossing the 200 baisa market, with the previous highs being 199 in May, 198 in March and 196 in February.
M-91 will cost 186 baisa. It may be noted a hike limit was introduced in May this year, beyond which the fuel prices for the erstwhile regular grade cannot be increased.
Diesel price is at its all-time high of 211 baisa, while the previous high of 208 baisa was in March. The hike in diesel prices might lead to an increase in transportation costs, which may affect the prices of commodities.
The public reaction to the new prices have been sharp on social media with many suggesting alternatives to fuel-powered vehicles.
The fuel price hikes are in line with the Oman crude prices that touched the $56 per barrel mark last week for the first time this year.
The Sultanate’s year-on-year consumer price index (CPI) for August touched 1.03 per cent, driven by a rise in furnishings, household equipment and routine household maintenance, education and housing, water electricity, gas and other fuels, according to the National Centre for Statistics and Information.
Transport prices rose 1.20 per cent. Food and beverages and the price of fish and seafood became dearer by 6.49 per cent, and fruits by 3.48 per cent.
There was a 52 per cent increase in the production rate of M-91 until the end of August, on a year-to-year basis, while its domestic sales were up 30 per cent in the same period.
There was a 11 per cent drop in the production of M-95 until the end of August on a year-to-year basis, while its domestic sales dropped 14 per cent.
Vinod Nair
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