Deregulating fuel prices in the UAE will have no adverse effect on the price of consumer goods, the Ministry of Economy has said.
From August 1, UAE motorists will pay on average 24 percent more for petrol following a decision to remove subsidies for domestic fuel and create a new pricing policy linked to global levels.
The first retail prices, announced by the government on Tuesday, ranged from AED2.07 per litre for Gasoline E Plus, up from AED1.61 per litre previously; to AED2.25 per litre for unleaded gasoline 98, up from 1.83 per litre.
The price of diesel has dropped from AED2.90 in Dubai to AED2.05 per litre.
In a statement, Mohammed Ahmed Bin Abdul Aziz Al Shehhi, undersecretary at the UAE Ministry of Economy for Economic Affairs, sought to reassure the public that the price of consumer goods will not increase as a result of the changes.
He stressed that the ministry’s Consumer Protection Department would work in cooperation with other authorities across the emirates to tighten control over the market and prevent any attempt to exploit the decision by raising the price of goods.
Initial projections indicated that the decline in diesel prices will trigger a related reduction in transport costs of consumer goods, Al Shehhi added.
And the country’s judicial system will gives the ministry legal authority to penalise any tradesmen who violate consumer laws by selling overpriced items.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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