iPhone | iPad
Android
Huawei
Majid Al Futtaim report reveals retail sector's robust growth during the year
KT APPDOWNLOAD
UAE govt to announce new petrol price today
Dubai - The government had late last week announced that it would deregulate the price of petrol, and link it to market movements.
The UAE government is set to announce on Tuesday the quantum of change in petrol prices, which will come into effect from August 1.
The government had late last week announced that it would deregulate the price of petrol, and link it to market movements.
While speculations range from anything between 20 fils and Dh 1.20, what the actual hike will be will only be known tomorrow.
Petrol price hike to burn savings
The announcement had brought mostly negative reactions from local residents.
One resident, Azhar Zia Ur-Rehman, said he was worried that rising petrol prices will remove some of the incentives for foreigners to live and work in the UAE.
"The main reason for living here is the savings. Most people may reconsider if savings are hurt," he said.
Basit Aman, a 37-year-old lifelong resident of Dubai, said he thinks the move will primarily disadvantage the UAE's low-income residents.
"It's not fair on people with low income and get a car with their savings," he said. "Then it gets difficult for them to arrange for petrol with the increase." (READ MORE)
Oil companies give thumbs-up
Abu Dhabi's oil marketing and distribution company Adnoc Distribution welcomed the deregulation of oil prices.
"We support the decision liberalising the prices as it will help rationalise fuel consumption, conserving the environment and protecting natural resources for generations yet to come," said Abdullah Salem Al Dhahiri, chief executive officer (CEO) of Abu Dhabi National Oil Company or Adnoc.
"The decision to deregulate the prices of fuel in the country with effect from August 1, and endorse pricing mechanism as per the international prices of gasoline and diesel will give us an opportunity to upgrade the standard of our services," he said. "It will also help us continue our policy which is based on investment and expansion in building full-fledged service stations," Al Dhahiri said. (READ MORE)
Subsidy to benefit the economy
Top economists have welcomed the deregulation of petroleum prices, saying it would allow the government to channel funds away from wasteful inefficient subsidies into productive investments, infrastructure spending, education and healthcare. Such spending would boost economic growth, improve the UAE's global competitiveness and bring in foreign direct investment, they said.
Carla Slim, an economist at Standard Chartered Bank in Dubai, said subsidies reforms will allow the government to allocate more funds for capital expenditure and to keep supporting the economy.
Subsidy reforms are being considered across the GCC and policy shifts are under way, she said. (READ MORE)
No special subsidies for Emiratis
Emiratis will not be given any additional support to offset the expected changes in the cost of living due to the deregulation of fuel prices in the UAE from August 1.
The Ministry of Energy has put an end to speculations that the increase in fuel prices may see 'additional services' being offered to Emiratis.
Clarifying the government's stance on what to expect following the announcement of the new prices, the ministry said in the 'frequently asked questions (FAQs)' section on its website that Emiratis will not receive any special services, including financial assistance or fuel cards. (READ MORE)
Other Arab states may toe UAE line
UAE's decision to deregulate fuel price has mounted pressure on other GCC and other Arab countries, and they may follow suit soon.
London-based Arabic daily Al Arab quoted informed sources that the Kuwaiti government was planning to accelerate steps to implement plans that had been repeatedly announced to continue reducing government subsidy after it had freed up diesel and kerosene prices at the beginning this year. (READ MORE)
More news from Economy
S&P Global UAE PMI for March reveals weakest supply chain performance in a year
Manufacturers keep prices seemingly low by shrinking size, weight or quantity of products, while the subtle reduction may go unnoticed by consumers
Task forces will follow up and oversee promotions announced by supermarkets, retailers and cooperatives
The agreements signed with Kuwait, Bahrain, Egypt and World Bank aim to boost developmental goals and diversify national income sources for the UAE
Buna’s cross-border payment solution will enhance investments among Arab countries, says minister
Finance minister says the agreement is part of the process of economic and financial integration between the countries
The United States, UK and Sweden all left rates steady this week
