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Thu 20 Aug 2015 02:06 PM

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New UAE fuel price policy to raise public transport use - survey

More than 20% of people polled say they will increase their public transport use following deregulation of petrol prices

New UAE fuel price policy to raise public transport use - survey

The UAE government's decision to deregulate petrol prices and to link the price to global market movements will increase residents' use of public transport, according to a new survey.

The YouGov survey revealed that in response to the subsequent fuel price rise of more than 20 percent in the UAE, nearly a quarter (22 percent) of car owners said they will be increasing their use of public transport to avoid digging deeper into their pockets to pay for fuel.

In addition, 20 percent of those that own cars said they will reduce their commute by moving closer to work or public transport.

Another 18 percent claimed they will use other fuel saving techniques such as carpooling, using school buses and shuttles, whilst 15 percent said they will buy a smaller car.

The poll also showed that just under half (49 percent) of respondents said 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 percent) claimed they will be spending less in other areas of their household budget to cover the cost of fuel.

This was particularly the case among expats and income earners of up to $2,665 per month, YouGov said, adding that 17 percent of respondents said they will dip into their savings.

"The UAE once again is setting the path for the region by removing fuel price subsidies," said YouGov consumer research director, Wadii Eljourani. "Whilst 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, the survey highlighted concern about the cost of property in prime locations among residents as a whole with 71 percent of respondents fearing the cost of rental property in areas closer to public transport will rise significantly.

Sixty-five percent also said they feared 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 respondents said they can see the fruits of the government's decision, with 46 percent believing it is necessary for the nation's long term economic 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," added Eljourani.

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Mosa 4 years ago

Alright, so I have a question.
We have 45-50 degrees of heat here. I have a meeting with a client in Barsha.

I stay in Sharjah, so...I take a Bus/Taxi to Dubai, then WALK to the metro in the scorching heat wearing a suit holding a briefcase, get on the metro, standing probably because they are all packed during peak hours.

I get down at Mall of Emirates station, WALK till the taxi stand, hail a taxi (if I am lucky to get one quickly), go to the final destination.
OOPS - I landed in the wrong spot, the client is on another street at the next signal.
Take another cab, go to the exact spot.

YAY! Journey completed!

Question 1: How much would it cost me?
Question 2: How long can I do this for and be enthusiastic about traveling in public transport to do my job with a positive mood?

P.S. And there are even worst scenarios.

Moral of the story: Blindly copying the west is not practical