30 July 2015
Muscat: With fuel subsidies expected to be lifted in Oman, the call for a good public transportation system is growing louder.
Following the UAE's announcement that petrol prices would increase by 23.6 per cent on August 1, economists and financial analysts in Oman, which has fuel subsidies of up to 50 per cent, anticipate that the Sultanate will soon follow suit and raise prices here, too. With higher petrol prices more people will look for ways to save money at the pump, including taking public transportation.
"It's essential to have a good public transportation system before any talk at all of removing subsidies. An infrastructure needs to be there to have an alternative, otherwise this is just going to hit people's pockets with no other way of recovering," said Bader Al Lawati, a local environmentalist known as one of the first "Freezing Omanis."
Al Lawati, who took public transportation as a student in Australia despite having a car, said he often wishes he could take buses because of the environmental aspect -- one bus can serve many more people than cars can -- and because he would save money on petrol, car repairs, parking and spend less time in traffic if there were dedicated bus lanes.
Dr Rakesh Belwal, professor in the Faculty of Business at Sohar University, said Oman needs to develop both a decent public transport infrastructure and a sharing culture in which people would ride buses together.
Both issues should be addressed before fuel subsidies are lifted, he said.
"Although this would not be possible to tackle fully in two years, gradual but steady initiatives and confidence building measures would be essential," he explained.
Hussain Al Noumani, an engineer from Muscat, said he worries that if subsidies were removed before a proper transit system were put in place, suppliers and distributors could take advantage of the prices and increase the costs of goods and services disproportionately.
"I think before any subsidies are removed the government needs to come up with better public transportation as this will have an impact on the socio-economics of the country," said Al Noumani.
Taxis, which in Al Noumani's view are already overpriced, would also raise their prices if gas becomes more expensive.
According to Belwal, the regulation of taxi services should be the first step to help the public transit woes. While there are many taxis available, there is a lack of confidence in their availability and their high prices discourage people from using them.
"Regulation of taxi services, controlling their operations, use of technology in dynamically scheduling their routes, and launch of mobile apps for an easy access to taxis can offer transit seekers and taxi-owners a win-win situation," commented Belwal.
Improving transportation from suburbs or satellite neighbourhoods to central areas in cities like Muscat, Sohar, Nizwa, and Salalah with mini-buses or metros is also needed, he added. This would cost less than taxis, providing some financial relief to people.
Al Lawati said there are numerous potential benefits to having a good public transportation system such as creating much-needed jobs for Omanis, improving the travel experience for tourists who aren't comfortable haggling with taxi drivers, reducing congestion on the roads, and making the roads safer with fewer vehicles and since people who drink alcohol would have the option of taking buses instead of driving under the influence.
"It's a win-win-win-win situation for everything," he said.
Wise decision
Al Lawati said he thinks the UAE made a wise decision by raising the price of fuel since subsidies aren't going to last forever and it may make resources last longer.
He said it will be easier for people in the UAE to adapt to the change thanks to the extensive public transportation systems, which he himself uses when he visits Dubai and which many people in the Emirates already use as an alternative to their private vehicles.
"What we need to do is build [a public transportation system] to the point where when and if fuel subsidies need to go away, the quality of life of the average Omani doesn't get impacted," he said.
Currently many people drive their vehicles in Oman more than they need to without giving the cost a second thought, or considering the resources they are wasting and pollution they are causing. If petrol cost more and hit the wallets, their behaviour might change, said Al Lawati.
If gas prices increase substantially and there were a strong public transportation, Al Noumani said he would be willing to use it. He used public transportation as his main mode of community while studying in England.
As of 2013, public transportation accounted for just 13 per cent of the modes of transportation in the GCC, much below places like Singapore and Hong Kong, where it is 60 per cent, said Belwal.
So far the UAE and Qatar have been taking steps to improve their public transportation systems, models that Oman could follow, he added.
On May 24 Oman National Transport Company (ONTC) signed an agreement with the Netherlands-based VDL Bus & Coach Company to buy 40 city buses which are expected to be delivered by mid-November.
Plans were also announced to introduce three new bus routes in Muscat, one from Seeb to Ruwi, one connecting Ruwi, Wadi Adai and Muttrah, and one from Al Khoud to Sultan Qaboos University.
ONTC also signed an agreement in May with Spanish company Ineco to draw up a master plan for public transportation in Muscat and other areas of the country, including intercity buses. The aim was to begin operations by the 45th National Day this November, with the plan expected to be completed by May 2016.
Muscat: With fuel subsidies expected to be lifted in Oman, the call for a good public transportation system is growing louder.
Following the UAE's announcement that petrol prices would increase by 23.6 per cent on August 1, economists and financial analysts in Oman, which has fuel subsidies of up to 50 per cent, anticipate that the Sultanate will soon follow suit and raise prices here, too. With higher petrol prices more people will look for ways to save money at the pump, including taking public transportation.
"It's essential to have a good public transportation system before any talk at all of removing subsidies. An infrastructure needs to be there to have an alternative, otherwise this is just going to hit people's pockets with no other way of recovering," said Bader Al Lawati, a local environmentalist known as one of the first "Freezing Omanis."
Al Lawati, who took public transportation as a student in Australia despite having a car, said he often wishes he could take buses because of the environmental aspect -- one bus can serve many more people than cars can -- and because he would save money on petrol, car repairs, parking and spend less time in traffic if there were dedicated bus lanes.
Dr Rakesh Belwal, professor in the Faculty of Business at Sohar University, said Oman needs to develop both a decent public transport infrastructure and a sharing culture in which people would ride buses together.
Both issues should be addressed before fuel subsidies are lifted, he said.
"Although this would not be possible to tackle fully in two years, gradual but steady initiatives and confidence building measures would be essential," he explained.
Hussain Al Noumani, an engineer from Muscat, said he worries that if subsidies were removed before a proper transit system were put in place, suppliers and distributors could take advantage of the prices and increase the costs of goods and services disproportionately.
"I think before any subsidies are removed the government needs to come up with better public transportation as this will have an impact on the socio-economics of the country," said Al Noumani.
Taxis, which in Al Noumani's view are already overpriced, would also raise their prices if gas becomes more expensive.
According to Belwal, the regulation of taxi services should be the first step to help the public transit woes. While there are many taxis available, there is a lack of confidence in their availability and their high prices discourage people from using them.
"Regulation of taxi services, controlling their operations, use of technology in dynamically scheduling their routes, and launch of mobile apps for an easy access to taxis can offer transit seekers and taxi-owners a win-win situation," commented Belwal.
Improving transportation from suburbs or satellite neighbourhoods to central areas in cities like Muscat, Sohar, Nizwa, and Salalah with mini-buses or metros is also needed, he added. This would cost less than taxis, providing some financial relief to people.
Al Lawati said there are numerous potential benefits to having a good public transportation system such as creating much-needed jobs for Omanis, improving the travel experience for tourists who aren't comfortable haggling with taxi drivers, reducing congestion on the roads, and making the roads safer with fewer vehicles and since people who drink alcohol would have the option of taking buses instead of driving under the influence.
"It's a win-win-win-win situation for everything," he said.
Wise decision
Al Lawati said he thinks the UAE made a wise decision by raising the price of fuel since subsidies aren't going to last forever and it may make resources last longer.
He said it will be easier for people in the UAE to adapt to the change thanks to the extensive public transportation systems, which he himself uses when he visits Dubai and which many people in the Emirates already use as an alternative to their private vehicles.
"What we need to do is build [a public transportation system] to the point where when and if fuel subsidies need to go away, the quality of life of the average Omani doesn't get impacted," he said.
Currently many people drive their vehicles in Oman more than they need to without giving the cost a second thought, or considering the resources they are wasting and pollution they are causing. If petrol cost more and hit the wallets, their behaviour might change, said Al Lawati.
If gas prices increase substantially and there were a strong public transportation, Al Noumani said he would be willing to use it. He used public transportation as his main mode of community while studying in England.
As of 2013, public transportation accounted for just 13 per cent of the modes of transportation in the GCC, much below places like Singapore and Hong Kong, where it is 60 per cent, said Belwal.
So far the UAE and Qatar have been taking steps to improve their public transportation systems, models that Oman could follow, he added.
On May 24 Oman National Transport Company (ONTC) signed an agreement with the Netherlands-based VDL Bus & Coach Company to buy 40 city buses which are expected to be delivered by mid-November.
Plans were also announced to introduce three new bus routes in Muscat, one from Seeb to Ruwi, one connecting Ruwi, Wadi Adai and Muttrah, and one from Al Khoud to Sultan Qaboos University.
ONTC also signed an agreement in May with Spanish company Ineco to draw up a master plan for public transportation in Muscat and other areas of the country, including intercity buses. The aim was to begin operations by the 45th National Day this November, with the plan expected to be completed by May 2016.
© Times of Oman 2015
