The Omani government is said to have raised the price of natural gas sold to industries located in its numerous industrial estates, in an attempt to boost the government’s revenue amid an oil price decline.

The Sultanate’s Financial Affairs Council has decided to raise the sale price of natural gas for all existing industries and industrial estates in the country, according to statement to the Muscat Securities Market (MSM) by Al Maha Ceramics Company.

The gas price has been doubled from 20.5 baizas per standard cubic metre to 41 per standard cubic metre. The decision will take effect starting January 1, 2015, the disclosure revealed, highlighting that there will be an annual natural gas price increase by around three percent per annum starting January.

This price change “may affect the projected profits of [Al Maha Ceramics] in 2015 by approximately 5%”, the Company noted, adding that it plans to mitigate this financial impact by “reviewing the pricing across different market segments and implementation of certain cost reduction & efficiency enhancement initiatives”.

It is worth highlighting that other companies which use natural gas as energy will also be affected.