Motorists discovered on Tuesday that they will have to pay on average more than 20 percent more for petrol in the UAE following a decision to deregulate gasoline and diesel prices and create a new pricing policy linked to global levels.
Prior to the change, retail prices ranged between AED1.61 per litre for Gasoline E Plus and AED1.83 per litre for Unleaded Gasoline 98, with Unleaded Gasoline 95 costing AED1.72 per litre.
According to an announcement by the UAE's Ministry of Energy on Tuesday, the first retail prices under the new policy will be as follows:
Unleaded Gasoline 98: AED2.25 per litre (up 22 percent)
Unleaded Gasoline 95 AED2.14 per litre (up 24 percent)
Gasoline E Plus: AED2.07 per litre (up 28 percent)
Diesel: AED2.05 per litre
The price of diesel, on the other hand, has fallen as it currently retails at AED2.90 in Dubai and the northern emirates, including Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah. The current price of diesel in Abu Dhabi is AED2.35.
The prices were announced by the UAE’s new Gasoline and Diesel Prices Committee which revealed its first monthly fuel prices for August.
The UAE announced last week that gasoline and diesel will be deregulated from August 1 and a new pricing policy linked to global levels will be introduced.
The committee, chaired by Dr Matar Al Nyadi, undersecretary of the Ministry of Energy, will meet on the 28th of every month to fix fuel prices.
In a statement, the committee said the impact on individuals will be minimal as the prices for cars with four cylinders will increase on average by nearly AED18, for 6 cylinder on an average by nearly AED25 and 8 cylinder by AED45.
"Such an increase would not create an additional burden on car owners with limited incomes. Additionally, it will promote rationalised consumption and incentivise people to choose most fuel efficient cars, while curbing the increase in the number of cars on the country's roads in the future."
The committee comprises senior representatives from the ministries of energy, economy and finance, and the CEOs of oil distribution and marketing companies, such as Abu Dhabi National Oil Company and Emirates National Oil Company.
Earlier on Tuesday, rating agency Moody's said scrapping fuel subsidies will cost UAE residents an average of $387 per head this year.
The Ministry of Energy on Monday confirmed that Emiratis will not receive compensation for the expected rise in living costs as a result of the changes.For all the latest retail 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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