142THE POLITICS OF REFORMQ ATA RThe only Gulf monarchy with cheaper electricity than Kuwait— and less
pressure to reform prices— is Qatar. Qatar is the richest of the Gulf mon-
archies and in 2018 was the wealthiest country in the world on the basis
of per capita income. For Qatari citizens, electricity is free, as is water. For
expatriate residents who dominate the population, however, electricity
prices have been rising for the last decade, including a bump in October
2015 from 2.16 to 2.43 US cents per kWh for consumption between 2,000
and 4,000 kWh. Even so, the cost of electricity to the government was
about twice as much, 4.2 cents per kWh.^12 Under the same reform, expa-
triates’ water charges jumped from US$1.20 to at least US$1.50 per cubic
meter for consumption beyond 20 cubic meters per month.^13
Qatar’s increased fuel prices (table 9.1) also appear to have reduced
2016 demand by 11 percent for gasoline and 2 percent for diesel. Qatar’s
small increases in expatriates’ utility rates were insufficient to reduce
overall demand but may have contributed to small declines in per capita
TABLE 9.1 Fuel price increases around the GCCDiesel (US$/gallon) Gasoline (US$/gallon)2014/2015 2018 % change 2014/2015 2018 % changeBahrain 1.00 1.61 61% 0.80 1.40 75%
Kuwait 0.69 1.32 109% 0.77 1.07 41%
Oman 1.44 2.45 71% 1.12 2.12 89%
Qatar 1.02 2.10 106% 0.87 2.04 134%
UAE 2.96 2.77 −6% 1.65 2.49 51%
After oil prices fell in the international market, Kuwait, Oman, Qatar, and the UAE linked gas-
oline and diesel prices to international market prices, adjusting them monthly. Increases
occurred in all the countries reviewed here except for diesel fuel in the UAE, which was adjusted
downward in line with falling international prices.
- Fuel prices are linked to global market prices; adjusted monthly 2018 prices were retrieved
from media and government sources in June 2018; price for 90 octane (or approx.) was used for
gasoline price.
Source: Compiled by Baker Institute from regional media and government publications.