The UAE has announced revised fuel prices for the month of August, with gasoline set to see a 24% price hike, while diesel prices will plunge 29%.
The new prices follow a decision by the UAE government to remove fuel subsidies, something tipped to benefit construction firms due to lower diesel prices.
Effective from August 1, the new gasoline prices will be AED2.14 per litre for Special 95, instead of the previous AED1.72, marking a 24% increase.
Meanwhile, Super 98 will be sold at AED2.25 per litre, and E Plus 91 at AED2.07, state news agency WAM reported.
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In welcome news for fleet owners and operators, diesel prices will drop by 29%, to be sold at AED2.05 from the previous AED2.90.
Dr Matar Al Nyadi, under-secretary for the Ministry of Energy, said the fuel price committee has based the new prices on the average global prices for gasoline and diesel in July, with the addition of transport, distribution and operating costs.
The reduction of diesel prices for August will serve as a stimulating factor for the economy, leading to a decrease in the prices of commodities.
“The ministry has coordinated with all relevant entities in the country to monitor the movement of prices and safeguard the rights of consumers. This will ensure that people across the country benefit from lower diesel prices, which would mean lower operating costs for a wide number of vital sectors such as industry, shipping and cargo,” Al Nyadi said.
The impact of gasoline price increases on individuals will be minimal, he added. Prices for cars with four cylinders will increase on average by nearly AED18, for six cylinders by about AED25, and eight cylinders by AED45.
“Such an increase would not create an additional burden on car owners with limited incomes. Additionally, it will promote rationalised consumption and incentivise people to choose most fuel efficient cars, while curbing the increase in the number of cars on the country’s roads in the future,” he said.
READ MORE: Construction firms set to benefit from end of UAE fuel subsidies
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