Living in Doha Qatar
Fuel prices in Qatar
Qatar being a gas-rich country, is the world's largest exporter of Liquefied Natural Gas, and is the world’s fourth best holder of natural gas reserves.
The policy of fuel pricing, and the fuel prices and taxes vary from one country to another. But, fuel prices are one of the most vital options for financing the transport sector in a country.
Given below is the average fuel pricing in Qatar. The average is based on 8 price points, and is considered to be reliable and accurate. The country adopts an ad hoc pricing mechanism. After the last price increase in 2011, the new prices released last year are:
Super 97 octane – QR 1 per litre
Premium petrol – QR0.85 per litre
Diesel – QR1 per litre
Kerosene – QR0.80 per litre
As of 6th April 2015, the price of gasoline in Qatar is 0.24 EUR per litre, which is 76 percent lower than the average world price of gasoline (0.98 EUR). Similarly price of diesel in Qatar is 0.24 EUR per litre, which is 72% lower than the average world price, as obtained from official data sources and media.
The average price of diesel around the world is 0.95 USD per liter, but, there is considerable difference in pricing among countries. The oil-rich countries that produce and export oil have considerably lower prices. A notable exception is the US which is an economically advanced country, but has low gas pricing. The differences in prices across countries are due to various taxes and subsidies for diesel.
All countries have access to same petroleum prices of international markets, but, they decide to impose different taxes. Therefore, the retail price of diesel is different. In some cases like the Venezuela, the government subsidizes diesel and hence, people almost pay nothing to drive their cars.
The average price of gasoline around the world is USD1.07 per litre. But, there is considerable difference in prices among countries. The difference is based on various taxes and subsidies for gasoline.
Recently, Qatar Fuel (Woqod) has increased the price of diesel by 50 percent from QR1 per litre to QR1.5 for local companies and QR1.8 per litre for joint ventures. But, companies that are not based in Qatar will continue to pay QR1 per litre. This is Qatar’s first hike in fuel prices after January 2011, when rates of diesel, petrol and kerosene jumped by more than 25 percent.
According to industry experts, the Arabian Gulf countries need to take advantage of current market conditions and allow natural gas prices to grow enough to attract required investment to meet sharp growth in demand over the next couple of decades.
The experts say that the MENA region has huge gas resources (80 trillion cubic metres) of reserves and majority of these are in the form of gas caps associated with oil reserves and will not be recoverable until the oil fields are depleted. The recoverable gas reserves are mostly located in Qatar, and large parts of MENA gas reserves are inaccessible to private capital.
The prices of petrol in Qatar are 40 percent controlled by state-owned Qatar Petroleum and jointly listed. The lower price per barrel will help reduce the government subsidy burden. According to an official at Qatar Petroleum, the prices at which fuel is being sold in pumps in Qatar is still way below the international price for petrol and diesel.
If you look at mid-Arabian Gulf Platts prices of diesel, for instance, it is about QR2.50 per litre, but Qatar is selling it at QR1.50 per litre, due to state subsidies.
The global oil prices have fallen to below $50 per barrel, marking 60 percent decline since June, and a near six-year low. The Qatar Fuel is deliberately diversified to protect it against heavy fall in oil prices and thereby, its profitability would only be minimally affected.
Share This Page
comments powered by Disqus