Friday 19 / April / 2024
Muscat: Some gas delivery agents are charging at least a quarter more than the legal price set by consumer watchdogs, in the wake of diesel fuel increases.
Cooking gas delivery prices have risen by an average of 500 baisas, and a section of gas distribution agents are now demanding between OMR3.8 and OMR5.
“You have to pay OMR5 if there is no lift in the building and if we have to carry cylinders upstairs,” one of them told Times of Oman on Monday.
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A 22kg cooking gas cylinder is being sold to suppliers for OMR1.9 but consumers claim that some delivery agents are charging OMR4 or sometimes more, though its price should be OMR2.8 as fixed by the government. “We allow vendors to charge OMR3.2 if he is carrying the cylinder to high-rises, but beyond that they should not charge,” a senior official at the Public Authority for Consumer Protection (PACP) said.
“I was shocked when my gas vendor said they had increased their prices by 500 baisas when the diesel price had gone up by just 10 baisas in February,” said Kavita, an Indian expat in Ruwi.
Ever since the latest increase was announced by the Ministry of Oil and Gas at the start of February 2017, small business owners and residents have felt the repercussions.
In the latest petrol price hike, M95 has increased to 196 baisas per litre, whereas M91 went up to 186 baisas, and for the first time in Oman’s history, diesel went over the 200 baisas mark and now costs 205 baisas per litre.
The Council of Ministers recently announced that the price of M91 would be fixed until the government can implement a safety net system for those in the country struggling to afford it.
Some company bosses told Times of Oman that the price-fix should also include diesel.
Gas distribution agents say they are burdened by the increasing cost of diesel. “In January 2016, the price of diesel was at 146 baisas a litre and now it is 205 baisas, so we are demanding more money. Then there are costs of vehicle insurance and wear and tear as well.”
A senior official from Muscat Gas confirmed that they sell gas to the vendors at OMR1.9 for one 22kg cylinder and OMR3.8 for a 44kg cylinder.
Around 10,000 cylinders are sold in Muscat every day. Driving instructors have also demanded a hike in the hourly fee after fuel prices rose.
Some driving instructors operating in Muscat have asked their students to pay a rial more.
Jinesh, an Indian expat residing in Oman, has been learning to drive from the same instructor for the past year.
“My instructor told me a few days ago that with the rise in fuel prices he will now charge a rial more than what he did earlier.”
Another expat who has been learning to drive for the last three years said: “I used to pay six rials when I first started but then there was a hike in the fee. I changed my instructor at about the same time and he said that I needed to pay seven rials. Now, with the latest rise in fuel prices, he said that he will charge eight.”
An instructor who raised his price from six to seven rials said that he had no choice.
“I was already charging much lower than most of the other instructors. Very few people charge six rials these days, but I had kept it at that and I did good business but now it’s so hard for me to sustain. If I didn’t take this step now, I am sure it would be hard for me to survive.”
Kabeer CV, a vegetable distributor in Muscat, said that diesel prices are hitting him hard, “I purchase vegetables from Mawelah Central Market. From there, I distribute it to supermarkets and shops. I cannot increase the selling price in line with the fuel price hike. I have to suffer the loss. Clearly, 20 to 30 per cent loss is occurring.”
Rajeev NS, an official at a transport company in Muscat, said that his loss is now between 25 to 30 per cent. “We have around 50 buses and some other vehicles, which I run on yearly contracts for companies. Fuel price hike cannot be used as an excuse to increase my fares as companies won’t agree. I cannot also touch my employees’ benefits because of loss. My company is facing a tough time.”
Citizens and residents should contact the PACP at 80079009 or at 80077997 to report any violation, a spokesman added.
