Despite the perceived gloom due to the prevailing international oil prices, and removal of fuel subsidy in Oman, people there are continuing to buy cars, and fuel marketing companies are planning to add more stations.
The Oman Oil Marketing Company recorded sales revenue of RO92mn for this three-month period of 2016, which is six per cent higher compared to the same period last year. “Despite the removal of the price subsidy, the retail business sales volume grew positively with the introduction of new filling stations to the retail network towards the end of 2015 and maturing of the existing stations,” stated the company in its financial statement for Q1 2016.
Shell Oman Marketing Company commissioned two new retail sites during the quarter, bringing the total number of retail sites to 176, while two were subject to significant rebuilds. Additional sites are under construction to open in the later part of the year, the company stated.
From April 2015 to March 2016, Al Maha Petroleum Products Marketing Company opened six new filling stations, taking the total to 197, with another four in various stages of construction, the company stated. The market has shifted to ‘regular’ petrol as it is priced lower than ‘super’. The sultanate recorded a significant 127.3 per cent year-on-year increase in the production of this petrol during the first quarter of the current year.
Despite low oil prices, Oman Oil Marketing Company stated that the future outlook of the sector is still positive. “It is expected that the growth in the demand for fuel is to be sustainable. The retail network development programme will continue focusing on prominent sites to ensure long-term sustainability and profitability.”
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