The UAE’s Ministry of Energy has set new nationwide fuel prices following a decision on 22 July to deregulate prices.

The new prices, which will be reviewed every month, will be AED2.25 a litre for the most expensive type unleaded petrol (super), while diesel fuel will cost AED2.05 a litre, which is down from its current price of AED2.90 a litre.

The increase in prices represents a 23 per cent hike for super unleaded and a 28 per cent increase for the cheapest grade of petrol which has moved from AED1.61 a litre to AED2.07 a litre.

The Ministry of Energy said it made the decision in line with its strategy to support the national economy, lower fuel consumption, protect the environment and preserve national resources.

The new policy has been ratified by the UAE cabinet, which also approved the setting up of a fuel price committee that will conduct a monthly review of fuel prices against average international levels prior to their implementation.

UAE’s Energy Minister Suhail al-Mazroui described the policy as a result of in-depth studies that fully demonstrate its long term economic, social and environmental impact.