Petrol and diesel prices to go up from tomorrow

Prices of fuels including that of diesel will go up in Qatar from tomorrow, the Ministry of Energy and Industry announced yesterday.  The 91-octane Premium gasoline will cost QR1.60 (QR1.55/litre now) and 95 Super QR1.70 (QR1.65 now) in March, the ministry said. Diesel will go up to QR1.55 a litre from QR1.50. Fuel prices in Qatar were allowed to fluctuate in response to changes in the global market from May 1, 2016.Every month, a special committee comprising representatives from various government bodies, would review fuel prices (gasoline and diesel) and make recommendations on proposed prices for the local market accordingly.The monthly revision in local fuel prices followed the government’s decision on fuel subsidy reforms in Qatar.What impact the fuel price hike has on consumer items remains to be seen as most of the goods are transported to Qatar from abroad. According to BMI Research, a Fitch Group company, the fuel subsidy reform would help Qatar reduce its budget deficit by allowing spending to decrease.“The fuel subsidy reform in Qatar will not increase revenues for the Qatari government, but allow spending to decrease and thus reducing the budget deficit,” a BMI researcher told Gulf Times recently.Meanwhile, Brent oil prices edged yesterday and were set to rise for five out of seven sessions as a global supply glut appears to ease, but rising US production limited gains, a Reuters’ dispatch showed.Brent crude was up 0.04% at $56.01 a barrel, while US West Texas Intermediate was unchanged at $53.99 a barrel.Oil prices tumbled on Friday after the US Energy Information Administration data showed US crude inventories rose for a seventh straight week.But the market has been supported within a tight $4 to $5 range since November, when the Organisation of the Petroleum Exporting Countries (Opec) and other producers agreed to cut production.“EIA data showed stocks rose 564,000 barrels to 518.7mn last week,” ANZ said in a note.