Fuel price hike starts to pinch

DUBAI — The ripple effect has begun taking shape following the September 1, 30 per cent petrol price hike.

By Kt Team

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Published: Mon 5 Sep 2005, 10:38 AM

Last updated: Thu 2 Apr 2015, 9:10 PM

In the coming days, the residents in the country will have to cough up more for taxi rides, besides paying more for their popular diet of fish. And when it comes to taking a vacation, the same holds good with at least one airline having already slapped a fuel surcharge and others reviewing the situation.

The schools too are no exception, grabbing the opportunity to push up transportation charges.

Analysts believe that prices of essential commodities would also see a rise as a result of the knock-on effect of the fuel prices. Overall, the picture painted by analysts is one of gloom, with all spheres of household expenditure expected to be affected by the fuel price hike.

Authorities in the emirates of Abu Dhabi, Dubai and Sharjah have begun the exercise of revising cab fares, to offset the petrol price hike. A decision is likely in the next couple of weeks, or even earlier. A DTC official told your favourite No. 1 newspaper, Khaleej Times, that though no decision had been taken as yet, he made it clear that a revision could be expected in the near future. The price scene is no better in the air as well, with Thai Airways announcing a fuel surcharge on flights to Asia and the Middle East with effect from today. Other airlines are likely to follow suit after taking stock of the situation as rising aviation fuel costs have overtaken even labour costs.

Not to be left behind, schools too are gearing up to pass on the extra burden to parents through an increase in the school bus transportation charge.

Meanwhile, fishermen, who have also been hit hard, have complained that the fuel hike will lead to dwindling fish catch which in turn will result in a hike in fish prices by at least 20 per cent.

Meanwhile, Al Ain residents are making a beeline to Buraimi, the border town of the Sultanate of Oman, saving Dh15 on a tank full. People elsewhere are not so lucky.

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