UAE Fuel Prices To Be Deregulated From August
Ministry of Energy announces fuel prices to be deregulated from August 1
Imthishan Giado
Update: Matar Al Nyadi, undersecretary of the Ministry of Energy and chairman of the committee, told UAE daily 7DAYS that petrol prices “might register a slight increase following the deregulation”.
He believes it “…will not have a major impact on the consumers as incomes in the UAE are high and fuel costs make up a fraction of people’s overall expenditure”.
In a statement, the Ministry of Energy has announced that fuel prices will be deregulated from August 1. Affecting both petrol and diesel prices, a new Fuel Price Committee will review fuel prices every month against international prices, prior to implementing the UAE tariff.
His Excellency Suhail Al Mazroui, Minister of Energy said that deregulating fuel prices “…would help decrease fuel consumption and preserve natural resources for future generations. It will also encourage individuals to adopt fuel-efficient vehicles, including the use of electric and hybrid cars.”
His statement provided no indication of whether petrol prices would go up or down, though diesel would likely go down.
“Considering the international prices of oil and petroleum derivatives, we expect diesel prices to go down. This will stimulate the economy as lower diesel price would mean lower operating costs for a wide number of vital sectors like industry, shipping and cargo among many others.”
Dr. Matar Al Nyadi, Undersecretary, of the Ministry of Energy and Chairman of the Gasoline and Diesel Prices Committee explained that the following month’s fuel prices will be announced on the 28th of the prior month. For example, the prices for petrol and diesel for the month of August will be announced on the 28th of July.
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