Oman’s producer price index for the third quarter of 2022 posted an increase of 36.6 percent, compared to the corresponding period in 2021, according to the quarterly survey by the National Center for Statistics and Information (NCSI).
The Oman News Agency (ONA) reported on Sunday that oil and gas prices took the lead by scoring a 44.1 percent hike, while non-oil products increased by 2.9 percent.
The rise in prices of oil and gas products was due to a 48 percent growth in crude oil and natural gas, coupled with a 21.8 percent surge in prices of refined oil products.
The rise in the prices of non-oil products was due to a 3.1 percent growth in prices of the converting industries’ group.
Prices of mining, electricity, and water increased by 2.3 percent.
Overall GDP growth in Oman rebounded from -3.2 percent in 2020 to 3 percent in 2021 and is projected at 4.3 percent in 2022, the IMF noted in a report.
The economic recovery is gaining traction. Rebounding economic activity and elevated global inflationary pressures are expected to push up average inflation to 3 percent in 2022 and down to 2.5 percent in 2023.
The report noted that there are risks of short-term economic relapse that stem particularly from global geopolitical conditions and their impact on the economy and oil prices, in addition to the renewed flare-up of COVID-19 infections, and the increased inflationary pressures from higher global food and energy prices.
“Fiscal and external surpluses are expected in 2022 and over the medium term.”
Central government debt declined to 62.9 percent of GDP in 2021 and it is expected to decline to about 43.7 percent of GDP in 2022.
Meanwhile, OQ, Oman’s government-owned integrated energy group, announced the start of operations at the third crude oil processing plant at Bisat oilfield.
The plant’s production would rise to 60,000 barrels per day (bpd) early next year.
OQ has successfully increased the production of the oilfield from 5,000 barrels per day in 2019 to 55,000 barrels per day by the third quarter of 2022, the fastest annual growth of oil field production in the region.