Qatar to hike petrol prices by 30 percent

Qatar to hike petrol prices by 30 percent

DOHA - Agence France-Presse
Qatar to hike petrol prices by 30 percent

A worker walks at Nahr Bin Umar oil field, north of Basra, Iraq December 21, 2015. REUTERS Photo

Energy-rich Qatar has decided to raise the cost of petrol by a third or more from Jan. 15, according to the state fuel company, amid a slump in global oil prices.

The surprise hike comes into force from midnight and has immediately led to queues at some petrol stations in Qatar, according to social media.

The rises were announced by Woqod, the state fuel company, in a memo sent to petrol station managers on Jan. 14.  Prices for regular petrol will increase to 1.30 Qatari riyals (35 US cents) a liter from 1.00 riyal.

Other products will increase even more steeply, with one, premium petrol, increasing around 35 percent to 1.15 riyals.

Last summer Qatar announced it would face its first budget deficit in 15 years in 2016 because of the fall in energy prices.

In December, it was forecast that lower energy prices would leave Qatar with a hole of around $12 billion in the 2016 budget.