‘Inflation significantly affected our business in Oman’

Energy Monday 24/October/2016 07:29 AM
By: Times News Service
‘Inflation significantly affected our business in Oman’

Muscat: Mohammed Faud, a national taxi driver in Ruwi, said that inflation has significantly affected his business.
Read here: Feeling the pinch in Oman?
“Fuel prices are up. We are not supposed to increase the fares. Prices of goods are going up. I don’t know, how I can adjust. It is quite difficult now. I have to think of my family, children’s education and medical expenses, too,” Mohammed added.
Meanwhile, Philip K Philip, group CEO of Muscat Insurance Company and Muscat Life Assurance Company, said that as a general principle, most economists favour low rates of inflation, as opposed to zero or below zero.
“Therefore, in my opinion, one shouldn’t be unduly worried about the minimal inflation rate. In real money terms, inflation due to healthcare costs could be occurring because of improved healthcare avenues and facilities. Increasing insurance penetration also could have influenced the current inflation (which will have a spiral effect on the spending, going forward),” Philip added.
Hashim Kutty, working in Oman since 1975, said that the cost of living has so far not been affected that seriously.
“However, there is a small impact. We have to cooperate for the economic development of Oman. It is not much, I think. So, I am satisfied. We don’t know how much it will go up or come down in the future. We have to adjust,” Hashim said, adding that inflation will have an impact uponearnings.
The hike in fuel prices has also affected the sales of large engine vehicles, as buyers prefer to purchase more economical options.
“We have had a significant drop in overall sales this year due to obvious reasons, however, the large vehicle market has been drasticallyaffected,” a sales manager of a leading brand in Oman said.
“The most common question people are asking us is about the fuel efficiency of vehicles. Even customers who are looking for bigger cars enquire about smaller engine variants,” he added.
NS Rajiv, managing director of a transport company that operates some 40 buses, said that the hike in fuel prices has had a significant effect on his company.
“We are in a fix. As I am operating buses for schools, I cannot increase the fees. Contracts are made on a yearly basis. I am suffering a loss of 10 to 15 per cent every month,” Rajiv said.
“While operational costs are going up and revenue is coming down, we are affected,” Rajiv added. A local hotelier also said that local bookings are falling, as people are not willing to spend as in the past. “Some days we even don’t have one local booking. It is affecting our revenues. People are not coming to hotels like in the past,” the hotelier said, on condition of anonymity.
(With inputs from Gautam Viswnathan and Syed Haitham Hasan)