Fuel prices will be deregulated as of Aug. 1, 2015 in the United Arab Emirates, the Ministry of Energy announced on Wednesday.
According to the U.A.E.'s official news agency, the country's new pricing policy will be linked to global prices. The new policy on gasoline and diesel is aimed at supporting the national economy and increasing the country's competitiveness in the global market.
"In accordance with the new policy that has been ratified by the U.A.E. cabinet, a fuel price committee has been set up to review fuel prices against average global levels prior to their implementation in the U.A.E. every month," Minister of Energy Suhail Al Mazroui said.
According to the minister, the decision to deregulate fuel prices has been taken based on in-depth studies on long-term economic, social and environmental impact.
"The resolution will build a strong economy that is not dependent on government subsidies. This step will put the U.A.E. on par with countries that follow sound economic methodologies. It is also anticipated to improve the UAE’s competitiveness while positioning the nation on international indices," he said.
Al Mazroui also said that the decision would help decrease fuel consumption and preserve natural resources for future generations.
"It will also encourage individuals to adopt fuel-efficient vehicles, including the use of electric and hybrid cars," he said, and added, "considering the international prices of oil and petroleum derivatives, we expect diesel prices to go down. This will stimulate the economy as lower diesel prices will mean lower operating costs for a wide number of vital sectors like industry, shipping and cargo among many others."
By Murat Temizer