Oman government on Monday announced revised petrol and diesel prices, effective from January 15, 2016. The super grade petrol price will rise 33% to 160 baisas per litre, regular grade petrol will rise 23% to 140 baisas and for diesel 10% to 160 baisas per litre, according to the Ministry of Oil and Gas. Salim bin Nasser al Oufi, Under-Secretary of the Ministry of Oil and Gas, said that the committee responsible for setting fuel prices has fixed the price for January 15 to 31. He said that the cost of aviation fuel price remains unchanged as it is not subsidised by the government. Cooking gas prices also remained unchanged. Al Oufi affirmed that the committee will hold a meeting at the end of each month to fix the monthly prices and that the committee may maintain the same price if global prices are close to the price in the local market.   Our comment: The increase in fuel prices come is part of the fiscal consolidation measures the sultanate communicated earlier in January with the release of the 2016 budget. The country is moving to a monthly adjusted price mechanism for fuel prices which it stated would slash the subsidy bill by 64% to OMR0.4 billion in 2016 providing savings worth c 2.7% of GDP. For more details, please review our earlier note on the subject (Times of Oman, Oman Observer)