UAE to announce deregulated fuel prices today
by Neha Bhatia
The UAE government is likely to announce the new pricing policy for fuel in the country today (Tuesday, 28 July, 2015).
Suhail Al Mazroui, Minister of Energy, said Wednesday, 22 July, 2015, that "the decision to deregulate fuel prices has been taken based on in-depth studies that fully demonstrate its long term economic, social and environmental impact".
“This step will put the UAE on par with countries that follow sound economic methodologies, and improve the UAE’s competitiveness while positioning the nation on international indices,” continued Al Mazroui, as per state agency WAM.
Petrol prices are subsequently expected to increase in the country.
At present, a litre of petrol sells for $0.47 (AED 1.73), but a fuel price committee has been set up to review prices against average international levels, which roughly range from $0.68 in less economically developed nations to $1.58 in more economically developed nations.
The new policy – which has been approved by the UAE Cabinet – comes in to force on 1 August, 2015.
The fuel price committee, which will review fuel prices on a monthly basis, includes the Ministry of Finance’s undersecretary, the CEO of ADNOC Distribution and the CEO of Emirates National Oil Company (ENOC).