Laughing all the way to the gas station: UAE has fifth cheapest petrol in the world
UAE motorists are laughing all the way to the tank after it was revealed the country has the fifth cheapest petrol in the world.
The latest Bloomberg Gas Price Ranking rates the retail price for petrol in the UAE at $1.77 (Dhs6.50) per gallon.
In Turkey, the world’s most expensive place to fill up, folk fork out a whopping $9.89 per gallon at the pumps.
Petroleum specialist Professor Reyadh A Almehaideb says there’s a reason the refined black stuff costs so little of the green stuff in the UAE. “The price of petrol is controlled by the government,” said the Dean of the College of Engineering at the United Arab Emirates University. “It’s less than the fuel costs.”
According to Bloomberg, as of 2010, the UAE subsidises about 68 per cent of the cost of gasoline.
But, the UAE is still one of the most expensive places to purchase petrol in the region. Second place on the world’s cut-price petrol pump list goes to UAE neighbour Saudi Arabia, where it costs just $0.45 per gallon. In Kuwait it costs $0.81 per gallon and $1.14 in Egypt.
However, in Venezuela, the cheapest place for petrol, it costs just six cents per gallon.
The editor-in-chief of motoringMe.com, Shahzad Sheikh, says cheap petrol may be good for roaring up the revs but there’s a knock-on effect on the environment.
“In most other countries, diesel and hybrid are becoming popular,” said Sheikh. “Not here. There’s little incentive to buy hybrid - you end up paying more.”
Professor Almehaideb added: “If fuel is cheap, nobody thinks about the conservation or environmental effects.”
- How Dubai Expo 2020 can benefit our planet and future generations
- Who will be the biggest losers after Iranian oil floods the market?
- An inside view into Turkey's multibillion dollar deal with Kurdistan that is threatening to break up Iraq
- Do we have more oil refineries than we need?
- The future of the Middle East economy: will energy subsidies' short-term gains outweigh projected inefficiencies?