Omans refinery production rises as demand for M95 surges

Total production of M95 rose by whooping 14 per cent in the first five months of 2019 to 5.5mn barrels compared to 4.8mn barrels in the same period of last year, the data released by the National Centre for Statistics and Information (NCSI) showed on Monday. The production of M91 petrol increased 3 per cent to 6.26mn barrels during the January–May period of 2019.

Buoyed by higher demand in the market, domestic sales of M95 jumped by 34 per cent to 5.1mn barrels during the first five months of this year, as the price gap between the two types of fuel is gradually reduced and a higher number of motorists in the country are preferring superior quality fuel. Domestic sales of M91 increased 5 per cent to 4.42mn barrels during the January–May period of 2019.

As per the NCSI report, the higher demand for auto fuel helped the sultanate’s refineries to register an overall 3 per cent growth in total output in the January–May period of this year as against the corresponding period a year ago.

Higher demand for M95 was recorded despite the fact that the government is providing M91 fuel at subsidised cost to a section of population. Oman’s government provides up to 200 litres of M91 petrol per month at subsidised cost to all eligible nationals as part of its effort to provide support to needy families in the wake of a sharp rise in fuel costs after the removal of fuel subsidies.

Another key highlight of the National Centre for Statistics and Information’s report was the significant increases in exports registered by all types of fuels in the first five months of the year. Shipments of M91 fuel rose 43 per cent to 1.97mn barrels this year as against 1.37mn barrels in the same period of last year. Exports of M95 and aviation fuel also rose 44 per cent and 17 per cent, respectively, the data showed.