The UAE to deregulate fuel prices

The United Arab Emirates (UAE) will deregulate fuel prices as of August 1, the Ministry of Energy announced.

The new price policy seeks to align UAE rates with the global market in an effort to support the national economy, lower fuel consumption, protect the environment and preserve national resources, reported Gulf News.

Fuel prices are to be decided through a fuel committee that will review national rates in accordance with international prices on a monthly basis. The committee will be chaired by the Undersecretary of the Ministry of Energy; other members of the agency include the Undersecretary of the Ministry of Finance, the CEO of Adnoc Distribution, and the CEO of Emirates National Oil Company (Enoc).

“The decision to deregulate fuel prices has been taken based on in-depth studies that fully demonstrate its long term economic, social and environmental impact,” said Suhail Al Mazroui, Minister of Energy, when making the announcement.

“The resolution is in line with the strategic vision of the UAE government in diversifying sources of income, strengthening the economy and increasing its competitiveness in addition to building a strong economy that is not dependent on government subsidies,” he added.

Al Mazroui also explained the deregulation would not mean an increased cost of living for individuals, but would encourage people to use of public transport more often, and will generate lower diesel prices.

Gasoline and other fuel prices for the following month will be announced on the 28th of each month.