Oil-rich states like Oman can afford to subsidise the price of petrol to below market rates. I can't say I really like it because it encourages very wasteful use of fuel.With the ever increasing cost of petrol and diesel in the UK and supposedly the rest of the world ,can someone tell me why Oman which is a country in the Gulf only charges 15 pence per litre. I've been out here in Oman now for the last month and I reckon it would cost me about £6 to fill up my car,whereas when I get back to the UK in the next few weeks it will be near to £55. Could someone please explain why we're paying so much more as I find it to be a complete rip off what we in europe are paying for the same product.
Also, about 60% of what we pay for petrol is tax, designed to reduce consumption and discourage imports. This is down significantly from 1997 when 81.5% of what we paid for petrol was tax. Since the cancellation of the fuel duty escalator in 2000 the percentage paid in tax has steadily decreased.