Friday 26 / April / 2024
Muscat: Oman Oil is awaiting "final confirmation" from the government and stands ready to roll out a fuel subsidy programme for the needy when any decision is taken, according to the company’s marketing CEO.
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David Kalife, CEO of Oman Oil Marketing Co, told TimesTV: "There are talks but we are waiting for final confirmation. We are waiting for the government decision about it. As soon as it is final, we would be happy to do it and contribute."
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As a result of falling oil prices, the government decided last year to cut a number of subsidies including fuel to cope with the economic downturn, but Shura Council members also called for a safety net for those unable to afford higher fuel costs.
"This is a government decision," added Kalife. "Many countries have applied this kind of logic in the past or are doing it in the GCC currently. We are accompanying the change."
Kalife, talking in a live interview with TimesTV's Shruthi Nair, also revealed the company's plans for the future and the number of Omanis working there.
He said: "Oman Oil Marketing has a very high level of Omanisation. It is at 86 per cent. It doesn't mean we are not welcoming others - the staff is very diverse. In terms of Omanisation, we propose jobs, it is open to everyone. It is in several departments and we are creating new positions to create new jobs by the end of the year -around a dozen."
On fuel prices, he said his company has to act fast when new rates are introduced every month.
"We receive (prices) from the concerned ministries that we apply after in the market. The important point is to apply it very quickly. For instance, for the month of August, from the moment it was announced, it took us less than a day to implement it in the field in our service stations."
He also talked about some of the hi-tech future proofing of Oman Oil.
"E-fill is smart and easy technology service. We have designed new technology in order to service the company fleets, commercial segments and later it will be opened to any kind of individual. It works on RFID tags, which is placed on your car. Then when you are in the service station, when you fill the nozzle will automatically recognise the RFID tag and dispense the right fuel, removing any human error. It helps in controlling your costs. It gives you a lot of statistics of what you have bought in the past weeks, past month. We are helping our customers to ration fuel consumption."
Shura Council members and advisors welcomed the news that talks on a fuel subsidy are on-going.
Hilal Al Sarmi, Shura member for the Wilayat of Seeb, said: "Very pleasing to hear, as we have many deteriorating conditions when it comes to low-income families. Any contribution that Oman Oil can make to this cause is great."
In April, Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas, said Oman's cabinet will study a proposal to partially compensate poor families, who are unable to afford rising petrol prices after the government eliminated subsidies on petroleum products last year.
"A cap on the petrol M91 grade price will continue until the cabinet takes a final decision. The cabinet needs more information. They are studying it. Once they come out with a solution, it will be announced," Al Aufi said at the time.
"With a fuel policy in place, people will know how much money they can put towards their expenditure and savings," said Ramanuj Venkatesh, an assistant manager (accounts) at Larsen and Toubro.
"Given that Oman's economy is currently reeling in a budget deficit, people's willingness to spend is low and people are cautious before they open their wallet to buy anything.
"If petrol prices were not fixed, people would demand higher salaries and better living conditions, which would be challenging for the economy in the long run," he said.
With the Ministry of Oil and Gas slightly increasing fuel prices for the month of August, M95 petrol now costs 186 baisas per litre, compared to 183 baisas a litre last month and M91 petrol is priced at 178 baisas a litre, compared to 175 baisas in July. The price of diesel has also gone up to 196 baisas a litre from 192 baisas a litre in July, and Hassan Zia, an engineer at Global Energy United, also welcomed the government's decision to subsidise fuel costs for low-income groups.
"For Oman to use a fixed price to meet the needs of low-income is good, because the price of everything else is increasing as well," he told Times of Oman. "The Majlis Al Shura is now deciding not to increase the price of any sort of fuel — be it M91 or M95 — anywhere between 120 and 180 baiza per litre so this is a step in the right direction, even if the price of M91 is slightly above the upper limit.
"This is a very good step taken by the government," added Zia.
P. Bhaskaran, convener for the Indian Social Club's Malayalam Wing, which has organised many charitable initiatives for those less fortunate, said: "This is a very good move by Oman Oil and the government, because the costs of items are going up in the country, and now people who are from low-income groups can live a little bit better, because many of them don't even receive their salaries on time.
"We have had many cases of people coming to us for financial aid," he added.
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