DOHA: There is no question of Qatar reforming its energy and water subsidy policies before assessing its possible impact on local economy. The country has to consider the health of its economy while discussing any reforms in its subsidy issues, Minister of Energy and Industries H E Dr Mohammed bin Saleh Al Sada said here yesterday.
Dr Al Sada was replying to a question whether Qatar has plans to review its subsidy policies in the energy production and supplies, as the reform in the subsidies has been cited as one of the best solutions to contain the emission rate.
The notion of cheap and expensive is relative to different economists. The issue of Qatar’s subsidy is closely linked to our local economy. We are looking it at how a change in the subsidy would impact the local economy in terms of inflation and other fundamentals, Dr Al Sada said.
We have to look into many factors, including inflation rates, before going in for such a major decision. “If you look at Qatar, we have adjusted our energy tariffs a number of times, depending on how the economy would react to that decision. Of course, we are moving ahead… but would definitely look at the health of economy before taking any decision on fuel subsidies...”, the minister said.
A series of side events held as part of the COP18 saw animated discussions how further momentum could be created for the reform of fossil-fuel subsidies in the region.
The Peninsula
