UAE Cuts Gasoline Prices Over 8% In September
The price of 1 liter of 95 octane gasoline will cost Dhs 1.96 from 1 September
The United Arab Emirates (UAE) has cut motor fuel prices for September, following a rate rise in August, the ministry of energy said Thursday.
The price of one litre of octane 95 Gasoline will cost Dhs 1.96 from 1 September down 8.4% compared to August, the ministry said. The rate for 1 liter of octane 98 gasoline has also been reduced by 8% and has been set at Dhs 2.07.
The ministry also fixed the diesel price at Dhs 1.86 per liter for September, a drop of 9.3% compared to Dhs 2.05 in August.
Undersecretary at the ministry Matar Al Nyadi said: “The prices are based on the average global prices for diesel and gasoline with the addition of operating costs and profit margins of the distributing companies. The fuel price committee will next meet on 28 September to agree on the prices for the month of October.”
The UAE announced in July that it would deregulate Gasoline and diesel prices from 1 August, and introduce a new pricing policy linked to global levels.
Gasoline prices were hiked by 24% in August, while diesel rates fell 29%.
Global Crude Oil prices fell sharply in August, even touching 6.5 year lows this week after concerns of oversupply grew.
Brent Crude is currently hanging at around 44 bbl compared to its peak of around 115 in June last year.
Experts say that low Crude Oil prices will allow the UAE to comfortably transition into its new fuel policy.
Deregulating Oil prices will help the country’s economy and boost government finances, the Institute of Chartered Accountants in England and Wales said.
According to the International Monetary Fund (IMF) the move will save the UAE about $500-M by the end of this year, just over 0.1% of its GDP (gross domestic product).
By Aarti Nagraj
Paul Ebeling, Editor
HeffX-LTN
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