UAE Cutting Fuel Subsidies

UAE Cutting Fuel Subsidies

The UAE Ministry of Energy said on Wednesday that from 1 August, gasoline and diesel will be linked to global prices. A fuel price committee, including Energy and Finance Ministry representatives and the CEOs of Adnoc Distribution and Emirates National Oil Company, will set prices monthly based on a review of average global prices and operating costs.

Petroleum and diesel will be deregulated from August 1 and a new pricing policy linked to global levels will be introduced, the country’s news agency WAM quoted the energy ministry as saying last week.

    “Deregulating fuel prices will help decrease fuel consumption and preserve natural resources for future generations,” said energy minister Suhail bin Mohammed al-Mazroui.

“It will also encourage individuals to adopt fuel-efficient vehicles, including the use of electric and hybrid cars.”
Matar al-Nyadi, undersecretary of the ministry and chairman of its new Gasoline and Diesel Prices Committee, told Reuters that petrol prices might initially rise slightly because of the reform, while diesel would fall.

At present, the state subsidies keep petrol and diesel in the Arab world’s second biggest economy at some of the lowest prices in the world.

Source: Media

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