Oman’s energy subsidy reforms

Last updated: 2 August 2023

In January 2021, Oman started implementing a phase out of its electricity and water subsidies. Prior to the reform, electricity and water subsidies were available to all consumers regardless of their level of income, including non-residential categories such as industry, tourism, agriculture and governmental entities. The plan is to gradually increase utility tariffs for all consumer categories until subsidies are fully phased out in 2025. In parallel, a National Support System was established to mitigate the impact of the reform on lower income households, based on a new electricity tariff structure. The support programme, based on a 2019 census, will take into account the monthly income of households as well as the number of household members. 

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