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 Dhs1.61 per litre for Gasoline E Plus and Dhs1.83 per litre for Unleaded Gasoline 98, with Unleaded Gasoline 95 costing Dhs1.72 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: Dhs2.25 per litre (up 22 percent)
Unleaded Gasoline 95 Dhs2.14 per litre (up 24 percent)
Gasoline E Plus: Dhs2.07 per litre (up 28 percent)
Diesel: Dhs2.05 per litre
The price of diesel, on the other hand, has fallen as it currently retails at Dhs2.90 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 Dhs2.35.
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.
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.