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Qatar to Scrap Fuel Subsidies in May as Decade of Surplus Ends

  • IMF says country heading for deficit of 2.7 percent in 2016
  • Move follows 30 percent increase in gasoline prices in January

Qatar will scrap gasoline and diesel subsidies next month as the world’s richest nation per capita is set to plunge into deficit this year after more than a decade of budget surpluses.

The world’s biggest exporter of liquefied natural gas is in the second year of a $200 billion infrastructure upgrade to help it host soccer’s 2022 World Cup. The decision to link transportation fuel to international prices follows a Jan. 30 percent increase in local gasoline prices for the lowest available grade.