UAE petrol prices will be deregulated from August 1
The UAE’s Ministry of Energy has announced that petrol and diesel prices will be deregulated from August 1, 2015. A new pricing system linked to global oil prices will be adopted.
According to Gulf News, the decision is “aimed at supporting the national economy, lowering fuel consumption, protecting the environment and preserving national resources.”
Suhail Al Mazroui, Minister of Energy, said that “in accordance with the new pricing policy that has been ratified by the UAE Cabinet, a fuel price committee has been set up to review fuel prices against average international levels prior to their implementation in the UAE every month.”
On the 28th of each month, the committee will announce the prices for the following month. Therefore prices of petrol and diesel for August will be announced on July 28, based on average global prices with the addition of operating costs.
The Ministry expects usage of public transport and electric/hybrid cars to go up as a result, although we don’t see that happening any time soon. Public transport is already at full capacity during peak hours, while prices of electric/hybrid cars are not government-subsidised here as they are in Western countries, let alone the limited availability of charging infrastructure.
The Ministry of Energy has assigned a dedicated number (0565467942) and email id (fuelprice@moenr.gov.ae) for public inquiries on the new deregulated fuel prices.
Comments
Pankaj
So indirectly, Fuel Prices are going to go up. Already they are higher compared to the rest of the GCC countries.
Also is Public Transport ready to handle such a rush if cars go off the roads even by 30%?
prado
UAE has no choice, with gas prices as low as they are and with Irani set to hit the market they need to support their budgets
cayanide
Shows desperate times … LOL
cayanide
Why don’t they deregulate other institutions like Electricity Telecommunication because they are cash cows…
mohd
because those earn money for the government, subsidizing fuel is just a loss
Thomas
How much of an increase can we expect? Is the rate going to be revised every month????????
afg
how this will protect the environment and fuel consumption if you need to commute every day or use the car (especially in summer) for short distances.. where are the bycicle tracks and other supporting infratsruture..? this is totally one sided it seems.
Ali
20-Jul-2015: The average price of gasoline around the world is 1.10 per liter.
the article mentions that prices are based on average global prices with the addition of operating costs.
which means 1.1 USD is 3.96 AED plus operating costs.
far more than the current gasoline price right now which is about 1.7 AED per liter.
I really do not expect the price to be that, maybe a bit less.
Matlama
can someone please come up with the entire list of readily available hybrid cars sold in Dubai?
Matlama
looks like UAE will be toyotafied even more.
cayanide
Metro and walk it’s hybrid
Bus and walk it’s hybrid
Taxi and walk it’s hybrid
we are spoiled for choices…
Matlama
I was asking about personal cars.
Neither public transport nor sarcasm…
cayanide
You can buy Tesla model S, Camry hybrid, Pathfinder hybrid, Nissan leaf(might be available now), Porsche 918 Spyder, Mclaren P1 all readily available for UAE.
Leborde
Tesla not sold in GCC.
AJ
Now I feel good about my Tesla purchase 🙂
Leborde
Maybe better to wait for the 1st Tesla showroom to open in GCC?
Zafar
Not good this kind of solution will be worst everything will be expensive food bevareges almost collapse
Ali
alright on AL Arabiya channel they said the price of gasoline should have a slight increase while Diesel will be lowered.
Mohamed
TBH, am not worried about this increase as much as the increase in rent, grocery, etc. let’s just hope for the best.
chris
i hope this will reduce the number of suv with just one person inside on the road, also less suv means better parking in the malls as majority of the suv drivers dont have the skill to park between the lines.. or they dont care
Thilanga Fernando
well i hope this will not end as in my country , every time fuel hike, living cost goes up , food , services, public transport every thing .. yet have to thank UAE for what they have given till Aug 1st .. so enjoy now fill up all the cans bottles , buckets , what ever you can fill fuel with and enjoy the less cost while it last 🙂
R
Since diesel will be lowered, then go for diesel cars. 80% of personal vehicles/cars in India are diesel engines since they are cheap on fuel. Except for the loud engine rattle that comes from diesel powered engines. they provide great mileage. I have seen BMW 7, Audis, all kinds of Merc, Renault Dusters and even mighty Range Rovers that are diesel powered.
Manulal Inasu
Diesel is more expensive to produce. In some countries it is sold cheaper than petrol because of high subsidies. As mass transportation and goods movement depends more on diesel than petrol, diesel’s price is artificially kept low to stimulate economy and to control prices. It’s effectiveness is debatable though.
Sajid
In Dubai You have metro & Bus but what about Abu Dhabi and Western Region.
What about mid class people who stay in Remote place goes to Dubai for work by car
Sure it is clear they are targeting for expats….
Terence Crasto
the price of petrol at Al Maha and Shell petrol station on you way into Hatta is still OMR 1.2 which is like 1.20Dhs.
i was reading through a few travel blogs and learnt that you can carry upto 500 litres back ,which is the permissible limit for self consumption.(this needs to be confirmed though)
so if you do the math;
1.20 Dhs x 500 litres = Dhs 600
So even if we looking at a price point of Dhs3 per litre
3 Dhs x 500 litres = Dhs 1500
All you need is to drive down 45-50 mins once a month maybe!!
cayanide
Dear don’t rely on this border check will not allow or make problem for you to carry in petrol from other country, they are smart enough to stop such practices.. the goal is earn here spend here don’t save anything…
farrukh
Dear they will not let u save now. They will pull out each penny from ur pocket. Definitely price hike will effect all living commodities.
Maria
The price for fuel will increase, the price for food, rent and ect. will increase as well. But what about salary? Will it increase as well? I do not think so. Soon we will have people on the streets bugging for money. I am its already happening in some areas but its going to be even worse.
cruiser
suv prices might down…may be
Leborde
Any jobs opening in Oman, Qatar or KSA? Cause we can be sure that the next move is taxes on earnings.
Leborde
The guys having the stupid-american-no-engineered V8 5 litres, 6.4 and any crazy high numbers like that can now start crying. His car will cost him a fortune and just lost 20% reselling value…at least.
Who just bought a 2015 Mustang V8? 🙁
Maybe now Audi will release diesel engines here.
Ajith Kumar
Not good this kind of decision will be worst everything and we will face a lot of question ????????????????.So please don’t take
such decisions………………..
Thilanga Fernando
well we have to wait till end of the month and see if Diesel be cheap only option is to buy a Diesel car or SUV , yet the cost of those will increase due to this and when selling our Petrol cars we will loose resale value ..
Muntazir
Locals will get FUEL ALLOWANCE .. its just a bomb for expacts ..
Really disappointed, they should deregualte fuel prices with GCC..
Or they should de regualte telecommunication, property rents, and electrcity rates also ..
🙁 🙁 🙁
Shaman
I ain’t seening no cheap public transport in Umm Al Quwain.
How will this new fuel prices going to help us?!
Shaman
Also, how many hybrid vehicles are there in the market? Do I have to buy a new hybrid car now?
._.
Giorgio
Most people in this country drive a lot just for their daily commute to the office… with higher prices they’ll have to drive the same kms and spend more.
I hope this will push car manufacturers to start importing more fuel efficient options. Regardless of the big V8s, mostly owned by people who can afford the price hike, the thounsands of Corollas in this country, with their old engines and 4 gears A/T offer the performances that in Europe are obtained with much smaller and efficient engines/transmissions.
Give us more modern engines and more manual options.
Moreover, I wonder what it will be the relationship between oil prices and prices at the pump. In most of the world gasoline prices follow directly oil prices, but this country exports much more oil than it imports petrol… will the relationship be inverted?
Peter
The point is that the whole city planning was designed “very American” with the assumption of extensive use of personal cars. A sudden “green conversion” will generate a gap of connections between areas of Dubai well served by public transport and other areas (the most) totally “lost in the desert” or far from any local transport. Further, the hight temperatures for most of the year make the last mile walk a real nightmare. The local transport system is still too small and underdeveloped to attempt any reduction of cars around. I believe any “green reason” is only hiding the need to recover money. It is widely clear the bogus story of the green house gas changing the planet temperature. It is an old hoax coming form the UK many years ago and a correlation between co2 and planet temperature is still not proven …yet the idea became a golden egg for the industry and Govs. Good luck.
Ben
Peter – why would you put such a stupid statement like that? Are you a scientist?
Strong evidence shows Greenhouse Gasses causing Global Warming. See for yourself… NASA and Bloomberg article below
http://www.bloomberg.com/graphics/2015-whats-warming-the-world/