Fuel prices rose 24 per cent in August as subsidies were scrapped
- Fuel and diesel prices to drop 8 per cent and 9 per cent, respectively
- UAE first in GCC to deregulate fuel oil prices
- Policy entails monthly review of prices
Gasoline and diesel prices in the UAE are to fall 8 per cent and 9 per cent, respectively, by September, according to the Energy Ministry.
Price per litre for Unleaded Gasoline 98 will drop to AED2.07 from AED2.25 in August while diesel will cost AED1.86, down from AED2.05.
The UAE implemented a fuel deregulation policy in August, which sent oil prices up by 24 per cent and decreased diesel price by 29 per cent.
It was the first country in the GCC to deregulate vehicle oil prices in line with strategic priorities among them freeing up resources tied to subsidies, lowering fuel consumption and promoting green initiatives. Pre-tax energy subsidies in 2015 in the UAE will amount to $12.64bn or 2.87 per cent of GDP, according to the Washington-based International Monetary Fund (IMF). The subsidies as percentage of GDP are higher in Saudi Arabia and Bahrain at 4.62 per cent.
The price for various vehicle oil products is to be reviewed every month by the Fuel Price Committee, who will consider global prices before determining the suitable price. The committee members comprise the undersecretaries of the energy and finance ministries and the chief executives of Abu Dhabi National Oil Company (Adnoc) Distribution and Emirates National Oil Company (Enoc).
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.