The UAE on Tuesday made foray into the new era of zero-subsidy regime for fuel prices in Gulf Cooperation Council by announcing new prices for August.
A high-powered committee, chaired by Dr Matar Al Nyadi, Undersecretary of the Ministry of Energy, disclosed the new fuel prices to be effective from August 1.
As per the information released on the Ministry of Energy website, unleaded gasoline 95 Octane rose 24.41 percent from Dh1.72 ($0.47) per liter to Dh2.14 ($0.58) per liter. Similarly, 98 Octane new rates reached at Dh2.25 ($0.61) per liter from Dh1.83 ($0.50) per liter, reflecting an increase of 22.95 percent while E-Plus 91 prices recorded highest rise in prices as it climbed 28.57 percent from Dh1.61 ($0.44) per liter to Dh2.07 ($0.56) per liter.
Al Nyadi said that the reduction of diesel prices for August will serve as a stimulating factor for the economy. This will enhance the competitiveness of the national economy, reduce the prices of commodities and eventually reflect positively on the economy.
He added, "The ministry has coordinated with all relevant entities in the country including the Ministry of Economy and the Supreme Committee for Consumer Protection to monitor the movement of prices and safeguard the rights of consumers. This will ensure that people across the country benefit from lower diesel prices, which would mean lower operating costs for a wide number of vital sectors such as industry, shipping and cargo.
"As for the increase in gasoline prices, the impact on individuals will be minimal as the prices for cars with 4 cylinders will increase on average by nearly Dh18 ($4.90), for 6 cylinder on an average by nearly Dh25 ($6.80) and 8 cylinder by Dh45 ($12.25). Such an increase would not create an additional burden on car owners with limited incomes. Additionally, it will promote rationalised consumption and incentivise people to choose most fuel efficient cars, while curbing the increase in the number of cars on the country's roads in the future."
Last week, the Ministry of Energy announced that fuel prices would be deregulated and would be linked with average global oil prices, with the addition of marketing and distribution costs.
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