Abu Dhabi Off-Road Club Forums

Reported in the National - 2 hours ago on 22nd July, 2015.

ABU DHABI // Fuel prices will be deregulated from next month and a new pricing policy linked to global prices will be adopted, the Ministry of Energy has announced.

The decision to remove current state regulations on the price of gas and diesel from August 1 is aimed at supporting the national economy, lowering fuel consumption, protecting the environment and preserving national resource, said Suhail Al Mazroui, the Minister of Energy, according to the news agency Wam

“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,” he said.

A fuel price committee has now been set up to review fuel prices against average international levels before the new policy - which has been approved by the UAE Cabinet - comes in to force on August 1. At present, a litre of petrol sells for 1.73 dirhams (47 US cents).

Chaired by the Undersecretary of the Ministry of the Energy, the committee includes the undersecretary of the Ministry of Finance, the CEO of ADNOC Distribution, and the CEO of Emirates National Oil Company (ENOC).

“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,” said Mr Al Mazroui. “This step will put the UAE on par with countries that follow sound economic methodologies.

“It is also anticipated to improve the UAE’s competitiveness while positioning the nation on international indices.”

The move will also have environmental benefits, will preserve natural resources for future generation and encourage the use of fuel-efficient vehicles, including the use of electric and hybrid cars, said Mr Al Mazroui.

The decision will also encourage the use of public transport rather than a reliance on individual vehicle usage. This in turn will reduce carbon emissions, he said.

The transport sector was responsible for 22 per cent of the total greenhouse emissions in the UAE in 2013 amounting to 44.6 million tons of carbon dioxide.

“Considering the international prices of oil and petroleum derivatives, we expect diesel prices to go down,” said Mr Al Mazroui. “This will stimulate the economy as lower diesel price would mean lower operating costs for a wide number of vital sectors like industry, shipping and cargo among many others.” He said the cost of gasoline represents 3 per cent to 4 per cent of an average income in the UAE, which is a reasonable percentage compared to international costs.

Consequently, deregulating prices would not have a notable impact on individuals’ costs of living, he said.

Dr Matar Al Nyadi, undersecretary of the Ministry of Energy and chairman of the newly formed Gasoline and Diesel Prices Committee, said that the role of the Ministry of Energy and Ministry of Finance as the government’s representatives in the committee will focus on consumer protection and ensure that petrol prices are balanced according to international standards.

The committee, he said, will hold regular meetings and monitor global prices.

On the 28th of each month, the committee will announce the prices for the following month. It said gasoline and diesel prices would now be based on an average of global prices, but did not give details of the pricing formula or say whether prices would rise all the way to global levels.

Prices of gasoline and diesel for August will be announced on Tuesday July 28.

The Ministry of Energy has assigned a dedicated number (0565467942) and email (fuelprice@moenr.gov.ae) for public inquiries on the new deregulated fuel prices.

jbell@thenational.ae

I think that the chances of this having a major impact on offroading will be limited. Typical offroader (say jeep 2014 with 65 litre tank) to fill is circa AED 110. if prices were to fluctuate each month, the likely impact would be a maximum of 30% increase or decrease.

However i understand that the fuel is already subsidised to some extent. if the subsidy is removed, then yes that will be significantly more expensive (i heard that we pay 1/3 of actual cost).

30% increase would mean AED143 for the jeep over say 390km rather than AED 110. No indication has been given as to how it will be actually calculated therefore August and September will give us a guide before most drivers head back to the sand.

How much was a bottle of water again?


Brian (Idaho) JK 0506154559 ****

Come to the Dark Side (we have cookies)...

Andy, I believe die hard off-roaders will not be kept from the sand but the frequency of trips will certainly diminish. Lol, is it my perception or am I seeing too many Fj and jeep sell adds already?

just another tax... better than income tax!

the problem is not the increament of the price of petrol, which has been fixed since 2008, it is that the salary are not following the crazy inflation in the UAE!!! and when all expat cannot anymore survive, or it is not seducing anymore to stay, it will be too late for the UAE economy.

so far, still good for me. The plus still wins onthe minus but my daily ride only needs 12l/100 if i behave... (the Jeeps need much more obviously)

Always the fuel price affect everything
Goods distributed to shops, transportation fees, all manufactured items were any type of fuel takes part of it ....

Good luck for those who lives in Dubai and work in Abu Dubai like me

So in the subject of gas; if you look throughout the history of presidential elections in the U.S., the pride of oil always drops when the election year is coming. It is at a lower point now. The average gas price in the U.S. Is $2.50 ish. A gallon (about 4 liters). That is about $.63 a liter and translated to dirhams is 2.31 AED. So if it is subsidized from that amount it is currently 50% less than the global market currently. So take away the subsidation and it is around 2.31 AED a letter now. Multiply that by your tank and that will give you what you pay in the best case scenario globally when oil is low. When oil gets high however, in the U.S. The gas goes to $4.80 a gallon which breaks down to $1.20 a liter. That converts to 4.41 AED per liter. Multiply that by your tank and that is what you could be paying when oil is high. So using this theory and rough estimates from trends of US gas prices I would guess that it will cost you about 150 AED when times are good and about 285 when times are bad to fill your jeep.



If you want to know what someone is like; take a good look at how they treat their inferiors, not their equals.

We were talking about this last night and the item of inflation was mentioned. I note what Xof said and see housing rents soaring, potential fuel price increases and possible income tax, but we have safety and security in where we live. But with such a large expat community who are transient, salary increases not matching these extra costs will I am sure dissuade some people. i think that if my fuel is subsidised the actual cost should be AED5.15 per litre or AED335 per tank which would make me consider driving especially as i have done 48,000km since buying car in April 2014 so assuming 380 km per tank, 126 refills, 8,210 litres (current AED 14,122 / unsubsidised AED 42,336).

As a UK citizen, the price of fuel in pretty much every country in the world is cheaper. The UK Government apply approximately 70% tax on the basic price. It is currently about GBP 1.15 per litre, or GBP 5.20 per gallon. Which equates to AED 6.61 per litre! That is why we all drive smaller, fuel efficient vehicles and really worry about miles per gallon.

As an owner of two Jeeps - my 2014 JKU and a 2011 Hemi powered Grand Cherokee, I delight every time I fill up. It is rumoured that the price will be increased by between 15-20% according to my local sources, which as has been said wont make much of a difference to those who don't have long commutes. I do sympathise with the Dubai-Abu Dhabi commuters as not only do you run the gauntlet every day with the idiot drivers, the cost will affect you a lot more.

As far as offroading goes, I personally will sacrifice other things before I reduce my time spent enjoying the dunes. The future for expats - as already mentioned, inflation is rising here for housing and cost of living, and wage increases aren't keeping pace. All we can do is watch and see.

Keep the sand flying while we still can!!

this is the reason why we are all still here: there is no better place than UAE even if it's not as good as it was.


"worst than yesterday but better than tomorrow"

And if you look at the bright side of things - this may mean less traffic on the roads.

Allan wrote:And if you look at the bright side of things - this may mean less traffic on the roads.

You think so Allan? Reading one of the articles in the papers, the spokesman for the Government said that one of the reasons they are putting the price up is because everybody gets paid too much!!

Interesting approach!

The revised prices are out. Special 95 is gonna cost 2.14AED a liter. That's an extra 30 AED each time I refill.

Iceman wrote:The revised prices are out. Special 95 is gonna cost 2.14AED a liter. That's an extra 30 AED each time I refill.

Still 3 time less than in Europe.