GCC States to Consider Unified Fuel Price
Oil ministers of the Gulf states are meeting tomorrow to discuss steps that have been taken towards finalizing a study on the implementation of a single petroleum price across the six-member group. The conversation is to take place during the 32nd Petroleum Cooperation Committee meeting in Riyadh.
What implications does this have for Qatar?
Oil analyst Rashid Abanami said that a uniform fuel price would lead to a hike in some countries, such as Qatar and Saudi, which enjoy relatively low fuel prices in comparison to the other GCC states.
A hike in oil prices, he says, will in turn prompt consumers to rationalize fuel consumption or decide to use cheaper means of transport.
"Such a decision could be implemented only after services for public transportation projects in GCC countries become effective. Most residents in these countries use their own means of transport,” added Abanami.
Is this feasible in a country like Qatar, where the use of public transportation is uncommon, especially for the locals?
Source: Arab News
Image: Reuters
electricity/fuel/food/water are already subsidised all over the GCC..i have not confirmed this for myself, but have been told often about how our electricity/water bills account for only 30% of the actual cost incurred by the government in producing it..a pack of Qubz has been 1 rial for years..these are welfare sates even for expats if one can see it that way..
as for the solar power, your wish is almost granted as Qatar is becoming a magnet for solar tech/research companies and I believe there's even a solar technology park coming up somewhere:-)
Lets see more solar power in a country with so much sun. I don't know if fuel is subsidised here but keeping fuel costs low helps everyone. In places where there is high fuel costs thefts and black market diesel are common.
Firstly, why ? Secondly contracts signed to develop the country will drastically escalate in price disrupting many projects. Thirdly Qataris wont stand for it. Fourthly the Emir would not want the negative impact that this would cause. I think all these countries are just paying lip service to he idea and it wont develop. Low fuel prices is one of the things that help make staying in Doha bearable. If only they would follow with lowering electricity costs. Qataris do not pay for Electricity and the price has been allowed to rise to very high levels compared with fuel.
true and then some..
and all those who feel people will drive less or that Qatar will be the biggest market for the Toyota Prius; not happening..people pay more than 8 rials a liter in the UK or America or India; bar a few adjustments, it seemingly has had a sum total of zero effect on people's usage of their cars. You can be sure the hike will be marginal..gas at even 2 rials a liter is a bargain compared to the rest of the world..but yes if people can whine about a 0.5 rial hike for Coke, they will for petrol too..that's what we do:-)
good plan, lets take action then, wish to cycle to office in the desert
The main hurdle is the mindset where no leader wants to be seen to be giving way ..
You would hope that a price increase would discourage people from buying these enormous 4x4's that average 10-12mpg, and into something a little more economical... maybe..
if it does in fact depend on the uniform currency plan being effected, as rip said, then we can ignore this for the time being; because the uniform currency isn't something that looks like it's happening soon..forgot the reasons why, but an article i read, listed some pretty major hurdles for them to overcome before the can unify on the currency
so foolish , Qatar has to enjoy it's own fruit
it's the product of Qatar
Can't see Saudi agreeing to this. The people will not stand for it and the Leaders will not risk it..
We all remember the outrage when the price of soft drinks (edited! thanks for pointing out a rather embarrassing typo!)went up.
I can only imagine how angry people will be at another petrol price increase, even if it might mean that traffic will get a little bit better.
In March 2009 the prices of coke and other soft drinks went up from 1qr to 1.5qr.
There was so much public outcry that on March 13 the government was forced to step in and the prices were ordered, by the government, to return to their previous prices. It was 2 more years before the retailers were allowed to out the prices up to their current levels.
How quickly people forget!
Read more here:
http://iloveqatar.net/forum/read.php?28,6483
Fubar...say what ??????
We all remember the outrage when the price of come went up
Read more: http://www.qatarliving.com/node/18126761#ixzz2fiwjuYYb
I guess this will come in just after the single currency they all agreed.... oh wait hang on a minute...