UAE studying fuel subsidies issue, says oil minister

Suhail bin Mohammed Al Mazroui says a report on the issue will be submitted to the gov't soon
UAE studying fuel subsidies issue, says oil minister
United Arab Emirates Minister of Energy Suhail Mohamed Al Mazrouei. (Getty Images)
By Reuters
Mon 15 Jun 2015 05:57 PM

The United Arab Emirates' oil ministry is studying the country's system of fuel subsidies and a report will be submitted to the government soon, oil minister Suhail bin Mohammed al-Mazroui said on Monday.

Speaking at an industry conference, he said the government had requested the report after there were questions over why domestic fuel prices didn't drop after the recent plunge of global oil prices.

Mazroui did not elaborate. Government subsidies keep domestic prices of fuels such as gasoline in the UAE at rock-bottom levels, among the lowest in the world; some officials have suggested cutting the subsidies to reduce pressure on the state budget.

But any subsidy cuts would be sensitive politically, and there has been no clear sign that the government is willing to take such a step.

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