UAE’s September Petrol Prices likely to be lower!
Petrol Prices to register a drop in September. The UAE last month stepped into the new era of zero-subsidy regime for fuel prices, by predetermining monthly prices according to international standards. The new monthly price formula for petrol and diesel for September will be announced on August 27. The decision will be applied across all the emirates, without exception.
Businesses will still not be impacted since the price of diesel, which is often used for transportation, freight and import and export operations, will decrease. This will serve as a stimulating factor for the economy. This will enhance the competitiveness of the national economy, reduce the prices of commodities which will eventually reflect positively on the economy. It has also been clarified that the “price of LPG will not be affected as LPG is not included in the deregulation decision.”
Several international agencies including the International Monetary Fund (IMF), the World Bank and think tanks such as the Economist Intelligence Unit (EIU) have, for some time, been advising the UAE and other Gulf countries to do away or at least reduce energy subsidies in order to support their respective budgets as well as increase fuel efficiency.
Even as the UAE’s economy remains strong and resilient, fuel subsidies put enormous strain on public resources.