Tuesday, April 12, 2005

Get ready to pay more at the pump

This is from yesterdays Oman Observer. I can't link directly to it since the Observer still doesn't archive its pages. The article is titled Steps to Take Diesel Shortage. It includes a statement from Nasser bin Khamis Al Jashmi, the under-secretary of the Ministry of Oil and Gas. I'm not really interested in the diesel shortage, but burried towards the end of the article is:
Al Jashmi pointed out that the government is conducting a study to liberalise oil product prices in the local market with a view to merging with the international oil prices traffic as is the case in many countries. Specifying the prices of oil products is not the concern of the Ministry of Oil and Gas alone, as some other departments, such as the Ministry of Finance, are also concerned with the issue of prices.

The current arrangement regarding the pricing of refined oil products in the Sultanate is by tying them with a specific price according to the type of products. Therefore, he said, the prices of these products will not, for the time being, be affected by the huge hike in international oil prices.
Do you know what this means? They want to increase the price of petrol. You will pay more when you fill your cars.

I've been driving about 16 years now and in all these years the price of petrol has been fixed. No matter how low the price of oil dropped, we in Oman never paid any less when we filled our cars. The price of petrol is controlled by the various ministries mentioned above. When I first to drive in the late 80's the price of oil had crashed. In the late 90's the price crashed even further and reached single digits. How come the government never reduced the price of petrol then?

Now that the price of oil is hitting the stratosphere, the Ministry of Oil & Gas wakes up and thinks "hey let's study liberalizing the price of oil." And what's worse they try to make it look like a good thing. Will they let gas stations compete in price too, or does liberalization simply mean "increase the price and then fix it again at the new price"?

6 comments:

Sowhat said...

GOD Dont say that muscati it is already the most expensive one with the worst quality in kuwait the are super , Ultra super and and many other types and all the pumps are owned by the goverment but it is still cheaper than oman and now they are raising it :( ..

actually they should make it cheaper now since the are gaining alot of from petrol are the prices are striking ( and Oman is an OPIC)
if my cherokee already take around 8 rials then how much it will take to fill it afte the raise !!!

Sleepless In Muscat said...

hey yeah....

that's a good point actually...

if my VW Bora already fills up with just over 6 Rials how much will it cost if they raise the prices?

what dorks are working behind thos governmental seats, anyhow?

...sheesh

Wardat_il'7leej said...

Glimpse of things to come ....

M-Pac said...

@ sowhat

just to clarify,
Oman is not an OPEC member.

Sowhat said...

M-Pac

opps thanks for the info i really appreciate it thanks alot ..

Masquerader said...

The difference is not going to be drastic on an individual basis.