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Audit report reveals violations in Oman’s National Fuel Subsidy System

The State Audit Institution has uncovered several violations within the National Fuel Subsidy System, highlighting lapses in eligibility verification and system controls that led to millions of rials in improperly disbursed subsidies.

TAS News Service

info@thearabianstories.com

Monday, October 20, 2025

MUSCAT – The findings were detailed in the Institution’s ‘Community Summary’ report, which examined the implementation of the fuel subsidy programme from 2021 through the third quarter of 2023.
According to the report, approximately RO 3.4 million was disbursed as undeserved support due to the lack of an accurate eligibility verification mechanism, the absence of an electronic link with the National Records Center, and the lack of requirements to prove eligibility.


The National Subsidy System, introduced following the 2016 Council of Ministers’ decision to cap fuel prices while transitioning to market pricing, was designed to support low-income citizens by partially offsetting the cost of fuel. The programme is overseen by the National Subsidy System Committee and managed by the Ministry of Energy and Minerals.


In light of the findings, the Committee is currently reviewing new measures to tighten eligibility requirements and improve digital connectivity with relevant government databases.


The audit also revealed that some beneficiaries exceeded their allocated fuel quotas by more than 197,000 litters over the same period. This occurred due to technical malfunctions in the systems of fuel marketing companies, which failed to deactivate subsidy cards when beneficiaries switched providers.
In response to the violations, authorities have launched a corrective action plan in collaboration with fuel marketing companies.

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