Times of Oman - December 20, 2016

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TUESDAY December 20, 2016 20 Rabi Al Awal 1438 AH

6 085010 120010 FROM THE WORDS OF HIS MAJESTY THE SULTAN

On the occasion of the 25th National Day Silver Jubilee, 1995

‘His Majesty’s Wisdom’ During these past years, with God’s help, our precious land has witnessed the realisation of many successes in all fields, which have resulted in bringing our Omani people to higher standards of life through their deliverance from the bondage of isolation, ignorance and backwardness.

Founded 1975 . Volume 41 No. 247 | 36 Pages . Baisas 200 . Subscription OMR63 | ISO 9001:2008 Certified Company | Chairman/Editor-in-Chief: Mohamed Issa Al Zadjali | Printed & Published by Muscat Media Group

BUDGET CARRIER

AUSTRALIA

Thai AirAsia X to suspend Muscat operations from January 19

HM receives message MUSCAT: His Majesty Sultan Qaboos bin Said has received a written message from Malcolm Bligh Turnbull, Prime Minister of Australia related to promoting bilateral relations between the two countries in all spheres. The message was handed over to Sheikh Salim bin Suhail Al Ma’ashani, Head of the International Organisations Department at the Foreign Ministry when he received Philip Ruddock, Special Envoy of the Australian premier and his accompanying delegation on an official visit to the Sultanate. >A2

RAHUL DAS

rahuldas@timesofoman.com

Another Musandam park goes solar

A5

MUSCAT: Budget carrier Thai AirAsia X is suspending its Muscat operations from January 19, 2017, the airline has announced. Thailand’s first low fare, long haul airline operates two flights a week to the Don Mueang International Airport in Thailand from the Muscat International Airport with Airbus A330-300s. “Thai AirAsia X announces the suspension of its service between Bangkok and Muscat, starting

FUEL HIKE BITES AS CAR SHARE CULTURE BLOOMS

January 19, 2017 onwards. Both our Thai AirAsia X flights, XJ555 and XJ556, will remain suspended,” a statement sent by Thai AirAsia X to the Times of Oman, said. Passengers with bookings on the affected dates can change to an

REJIMON K CHIEF REPORTER

reji@timesofoman.com MUSCAT: Most drivers in Oman are now paying around 45 per cent more for fuel compared to January this year, thanks to plunging oil prices, removal of the government subsidy and price hikes. The government’s own data on fuel prices for the months from January through December show that a litre of supergrade fuel has risen from 120 baisas to 176 baisas. The government subsidy, which varied from month to month and was linked to that month’s oil price, was removed on January 15. That – coupled with monthly variations – has left Omani drivers paying almost half as much again for the same amount of fuel. This month, regular fuel costs 165 baisas a litre, the price of supergrade is 176 baisas and the price of diesel is 177 baisas. Comparing the January 1 price with the December 1 price, the supergrade price is 46.6 per cent up, the price of regular grade is 44.4 per cent up and the price of diesel is 21.2

With the removal of subsidy, motorists have to spend almost 45% more money for filling their fuel tanks, upsetting their monthly budgets

earlier flight between December 19, 2016 and January 14, 2017 at no additional cost. “The change will only be permitted one time, and subject to seat availability. We are also offering a transfer cost of flight to a 180-day credit shell that can be used for the purchase of goods and services from AirAsia via www.airasia.com (such as flight tickets, pick-a-seat, pre-booking meals, baggage weight fee) or passengers can also receive full refund via the channel through which payment for the booking was made,” the official said.>A6

per cent up. Filling station owners say their takings are also down this year. One reported a drop in profits from around 9 per cent to just 1 per cent. The downturn has forced residents to car share or not take the car at all, according to filling station bosses, who say they are not reaping the rewards of the higher prices at the pumps. Almost a year after the fuel subsidy removal in Oman, motorists have become sensible in filling their tanks as they have to spend around 45 per cent extra in prices when compared to what they had to do until January 15. Fuel subsidy “The months without fuel subsidy has upset my budget. I travel a lot for my business and personal purposes. Before subsidy removal, I had to shell out only around OMR5 to fill my car tank. Now, it costs around OMR8,” Sunil Kumar K, a senior engineer at a construction company in Muscat, said. “I have to fill the fuel tank at least 10 times per month. This means that I am shelling out OMR30 extra every month,” Sunil added. >A6

OPEC DEAL

CEASE-FIRE

Oman’s oil price rises as dollar weakens

RUSSIAN AMBASSADOR TO TURKEY SHOT DEAD A gunman gestures after killing Andrei Karlov, the Russian Ambassador to Turkey, at a photo gallery in Ankara on Monday. Turkish security sources said the gunman, who See also >A12 shouted “Don’t forget Aleppo”, was an off-duty police officer. -AP/PTI

Kerry thanks Oman for talks on Yemen

SYED HAITHAM HASAN

haitham@timesofoman.com

REJIMON K

reji@timesofoman.com MUSCAT: Oman’s crude rose by more than a dollar amid a weakening dollar and delay in Libyan oil output as confidence in compliance of Organisation of the Petroleum Exporting Countries (OPEC) deal grew stronger. Omani crude oil futures, to be delivered in February, grew by 2.4 per cent to $53.24 on Monday due to expectations of tighter crude oil supply going into 2017. The prices mirror gains made by international crude oil benchmark, the Brent crude and West Texas Intermediate, which grew by 26 cents to reach $55.47 and by 30 cents to reach $52.20, respectively. Although, there has been a significant rise in the price of Oman crude, it remains nearly 3 per cent less than last week, postOPEC announcement to choke oil production. In a direct response to the OPEC deal with independent producers to cut 1.8 million barrels a day, Omani crude prices soared by more than 5 per cent on December 11. However, the decision of the US Federal Reserve to raise interest rates poured cold water on the oil rally on December 14, cancelling gains made earlier that week. According to analysts, prices will continue to rise with US bank Goldman Sachs updating its oil price forecast for 2017 to $57.50 for WTI from $55, on account of high compliance expec-

MUSCAT: John Kerry, the US Secretary of State, met Oman’s Foreign Minister Yousuf bin Alawi on Sunday and thanked the Sultanate for charting a way forward on Yemen, including the urgent need for a ceasefire and implementing a roadmap. Kerry was in Saudi Arabia on Sunday to discuss US-Saudi ties and Yemen issues. In a statement, Kerry thanked Alawi, UN Special Envoy for Yemen Ismail Ould Cheikh Ahmed, his counterpart from United Kingdom and Sheikh Abdullah bin Zayed from the UAE, for moving forward with a plan to stop the fighting and to negotiate a political settlement. Oman’s Ministry of Foreign Affairs also posted pictures of the meeting on its twitter account stating that discussions were held to resolve the Yemen crisis.

1.8m barrels a day output cut has been pledged by the Organisation of the Petroleum Exporting Countries

tation from the OPEC deal in Vienna and low oil production in the US. Allison Holland, IMF mission chief in Oman, said the OPEC deal would help reduce excess supply in the market, and has already resulted in a significant increase in oil prices which could boost revenue for Oman. “If the oil price increase is sustained, it should result in higher oil revenues for Oman despite the cuts agreed to in production. This will boost Oman’s export and government fiscal revenues and help support the implementation of the government’s economic policy agenda, including the associated public investment programme,” she said.

TOP THREE INSIDE STORIES

OMAN

WORLD

MARKET

Oman Post to start remittance service

Lagarde guilty, but not punished

Solar project advisers to be selected soon

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2

3

The Central Bank of Oman (CBO) on Monday approved a request from Oman Post for starting remittance service. The apex bank’s board also allowed Oman Investment and Finance Company to raise its stake in Bank Sohar from 15.13 per cent to 17 per cent. >A2

French judges found IMF chief Christine Lagarde guilty of negligence for failing to challenge a state arbitration payout to a business tycoon in 2008 when she was French finance minister, but they did not punish her. In their ruling, the judges did not see negligence in Lagarde’s decision. >A12

Consultants for advising the Sultanate’s government on the country’s first large-scale solar project are expected to be selected by the Oman Power and Water Procurement Company (OPWP) this month. OPWP had floated a request for proposal (RfP) in October. >B1

MORNING MINUTE


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