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Gulf states plan to phase out below-cost electricity for their citizens

Subsidy reform is at the crux of state-led pushes to instill a change in thinking among citizens and a powerful tool to raise environmental awareness.
Oman power

Oman’s residential electricity costs did not increase between 1987 and 2020, despite inflation of roughly 80% over the same period. But Qaboos bin Said Al Said’s era is over and the new ruler, Sultan Haitham, has pledged to put public finances on a healthy footing. 

Budget austerity is likely to hit electricity rates, but not just yet. The sharp increase in oil prices bought Oman some precious time. The previous decision to phase out residential electricity subsidies by 2025 has been adjourned, and they are now expected to run for ten years.

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