Price hike will boost public transport use: Survey

Top Stories

Price hike will boost public transport use: Survey
20 per cent of those who own cars say they will reduce their commute by moving to houses closer to work places or access to public transport.

For those who won't be changing their travel habits, the largest proportion of car owners (41 per cent) claim they will be adjusting the budget by trimming other household expenses.

By Staff Reporter

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Published: Fri 21 Aug 2015, 12:00 AM

Last updated: Sat 22 Aug 2015, 8:59 AM

The government's decision to link the prices of UAE petrol to market movements will increase residents' use of public transport according to new YouGov survey findings.
In response to the fuel price rise of more than 20 per cent in the Emirates, nearly a quarter (22 per cent) of car owners in the UAE say they will be increasing their use of public transport to avoid digging deeper into their pockets.
In addition, 20 per cent of those who own cars say they will reduce their commute by moving to houses closer to work places or access to public transport. Eighteen per cent claim they will use other fuel-saving techniques such as carpooling, school buses and shuttles, whilst 15 per cent say they will buy smaller/more fuel efficient cars. Just under half (49 per cent) say they will be more careful about travelling unnecessarily, such as taking frequent trips to malls and parks.
For those who won't be changing their travel habits, the largest proportion of car owners (41 per cent) claim they will be adjusting the budget by trimming other household expenses.
This is particularly the case amongst expats and income earners of up to $2,665 per month. However, 17 per cent of respondents say they will dip into their savings and seven per cent will use a credit card to account for higher spend.
"The UAE once again is setting the path for the region by removing fuel price subsidies," says YouGov consumer research director, Wadii Eljourani. "While consumer spending will come under stress in the short term, the decision looks to have a positive impact on the use of public transport rather than cars."
When it comes to the medium to long term impact of the rise in fuel prices, there is concern about the cost of property in prime locations among residents as a whole. Seventy one per cent of the full sample (car owners and non-car owners) claim the cost of rental property in areas closer to work/public transport will rise significantly. Sixty five per cent also fear higher fuel prices will impact the country's ability to attract and retain foreign talent to the region, especially those earning a low wage.
On the flip side, nearly half of the espondents can see the fruits of the government's decision, with 46 per cent believing it is necessary for the long term economic sustainability. This is felt the most amongst Emiratis and Asians (both just under half of respondents). Forty four per cent agreeing it will lead to better environmental sustainability.
"Understanding the long term impact the government's decision will have on the UAE's environment and economic sustainability reflects residents' loyalty to and confidence in its leadership. It also demonstrates their willingness to continue contributing to the country's long term development, even if they are here for the short term." says Wadii Eljourani.
reporters@khaleejtimes.com


More news from