Budget surplus widens to RO1.123bn; net oil revenue up 37%

Muscat – Oman’s total public spending has increased 12.5 per cent this year as higher revenues enabled the government to spend more on development projects, subsidies and other contributions and schemes.

Helped by higher revenues, the sultanate’s budget surplus also increased to RO1.123bn for the January–September period of 2022 against a deficit of RO1.03bn in the same period of 2021, data released by the Ministry of Finance showed on Monday.

Earlier this year, the ministry had said that the surplus will be utilised for strengthening economic recovery by increasing spending on priority development projects and reducing public debt.

Total public spending rose to RO9.444bn during the January–September period of 2022 against RO8.398bn in the corresponding period of last year, recording an increase of more than RO1bn, the data showed.

Current expenditure, which is the biggest part of Oman’s public spending, increased 10.1 per cent to RO7.07bn in the first nine months of 2022 compared to the corresponding period of 2021. Development expenditure amounted to RO657mn in this period of 2022.

Total contributions and other expenses (including government subsidies) increased massively – 148 per cent – to RO1.434bn in the January–September period of 2022, as opposed to RO578mn in the same period of 2021.

‘By the end of September 2022, oil products and food commodity subsidies amounted to RO563mn and RO18mn, respectively,’ the ministry said.

The Ministry of Finance paid the private sector an amount of RO827.5mn at the end of Q3 2022.

Oil & gas income jumps 52%

On the back of robust growth in oil and gas income, the government’s total revenues rose 43.4 per cent to RO10.567bn in the first nine months of 2022 compared to RO7.368bn in the same period a year ago.

Oman’s hydrocarbon revenue increased nearly 52 per cent to RO8.102bn during the January–September period this year compared to RO5.331bn registered in the same period in 2021. ‘Such increase is supported by higher average oil price of US$94 per barrel as well as an increase in oil production to 1.056mn barrels per day.’

Net oil revenue grew 37 per cent to RO5.361bn this year while gas revenue jumped 92.8 per cent to RO2.741bn. Additionally, the government’s current revenue (which includes tax income) increased 22.3 per cent to RO2.45bn compared to RO2bn in the same period of 2021.

Oman oil rises to $93.08

Oman oil price for January 2023 delivery went up by 84 cents to reach US$93.08 on Monday.

The average price of Oman oil for November delivery has stabilised at US$90.80 per barrel, which is US$6.20 per barrel lower than October delivery.

Internationally, oil prices stabilised on Monday around US$100 a barrel as support from a weaker dollar and recovering Chinese crude imports met renewed demand concerns linked to China’s stringent COVID-19 containment approach.

Brent crude futures were down one cent, or 0.1 per cent, to US$98.56 a barrel. US West Texas Intermediate crude rose by four cents – or 0.04 per cent – to US$92.65.