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Oman to Start Removing Utility Subsidies January Next Year

  • Power, water subsidies to be removed for large consumers first
  • Oman is grappling with one of the Gulf’s biggest deficits
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Oman, which hasn’t changed electricity costs for residential consumers since 1987, will start removing power and water subsidies for the biggest consumers as soon as next month as it tries to tame one of the Persian Gulf’s largest budget deficits.

Electricity subsidies will be removed completely by January 2021 for big non-residential consumers, including industrial, tourism, commercial and government entities. Utility tariffs will be raised gradually for all until the subsidies are completely lifted in 2025, and a national support system will be implemented to help low-income consumers.