Subsidy cut is good news, even if doesn't sound so

This progressive step weans us away from an era of cheap fuel and will stop us from buying fuel-guzzling SUVs and sports cars.

Published: Thu 23 Jul 2015, 4:46 PM

Plans to cut fuel subsidies will make the UAE a greener place to live in and encourage the use of public transport. Aligning fuel prices with global market forces is important for the economy to sustain its growth and weather storms that come its way.
Our roads will be safer and it could spark a move towards fuel efficient vehicles. Many of us could even cycle to work, if the weather permits. The move to deregulate fuel prices from August 1 is in the national interest because it will help preserve precious resources, which could boost the economy.
This progressive step weans us away from an era of cheap fuel and will stop us from buying fuel-guzzling SUVs and sports cars. Prudent residents can slash their expenses by avoiding needless travel. Savings could rise and carbon emissions could fall because more vehicles will go off the roads. The government, on its part, has said petrol prices will be balanced according to international standards. Oil retailers, however, must increase operational efficiencies to lower their costs.
The move to withdraw subsidies has foresight as it will help the country reach for renewables. With the country moving towards solar power, why can't our vehicles have a cleaner drive? There's a big push for electric cars, but very takers in the country. This move could give a fillip to sales of electric vehicles and hybrids. Manufacturers will also shift to producing smaller, fuel efficient vehicles. The good news is the price of diesel for public transport is expected to fall.
With the drop in world crude prices, it is important for the country to bite the subsidy bullet, but tabs should be kept on prices of essential commodities to ensure living standards are maintained.
Residents' fuel bills will rise but it's a small price to pay for a stable economy.