Muscat: The Sultanate of Oman will slowly be lifting subsidies on electricity and water starting from January 1, 2021, as a part of the Medium-Term Fiscal Plan (MTFP).

As per the new decision, the subsidy removal will be in a phased manner, and incentives will only be applicable to those who are eligible for subsidies under the National Subsidy System (NSS).

These incentives will be provided through direct subsidies that represent 33 per cent of the value of the bill, up to a specific consumption ceiling of 4,000kWh/month for electricity. A similar mechanism will be applied to water in the coming months.

Who falls under the NSS?

1. Families whose income is under RO500*, irrespective of the number of family members.
2. Families whose income is RO750* or less, and there are five or more family members.
3. Families whose income is RO1,000* or less, and there are seven or more members.
4. Families whose income is RO1,250* or less, and there are nine or more family members.

Who is not eligible for the NSS?

1. Families whose income is above 1,250*, irrespective of the number of family members.

* Income per month

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Source: ONA