Qatar slashes fuel subsidies

17 January 2016

The price of gasoline rises by 30 per cent

Qatar has cut fuel subsidies, increasing the price of gasoline by 30 per cent, according to the state-owned Qatar News Agency (QNA).

The reforms were introduced at midnight on 14 January and come as persistently low global oil prices erode government revenues, putting pressure on spending.

Last month the Qatari government said it was expecting a budget deficit of QR46.5bn ($12.8 billion) in 2016, its first deficit in 15 years.

Super 97-Octane gasoline now costs QR1.30 a litre, up from QR1.00 a litre.

The government has not said how much money it expects to save through the subsidy cut.

Qatar’s fuel price hike comes after similar measures in the UAE, Saudi Arabia, Bahrain and Oman.

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