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What you need to know about the fuel subsidy scenario in UAE

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The UAE, where the fuel usage per head is already amongst the highest in the world, and it has the 15th cheapest petrol price in the world.

Published: Wed 22 Jul 2015, 12:06 PM

Updated: Sun 26 Jul 2015, 10:22 AM

  • By
  • Agencies

.The UAE Supreme Council of Energy has submitted recommendations to the Ministry of Energy to reduce fuel subsidies over a period of time.
.The UAE, where the fuel usage per head is already amongst the highest in the world, and it has the 15th cheapest petrol price in the world.
.The petrol costs about Dh6.5 per gallon (Dh1.72 or 47 cents per litre) according to globalpetrolprices.com.
.Saudi Arabia is the third cheapest when it comes to petrol prices. The petrol cost is at just Dh2.2 per gallon (58 fils per litre), while the most expensive place is Norway, where it cost $2.67 per litre.
.The UAE government pays around Dh1.20 towards every litre of gasoline sold. The size of financial support that the UAE government provides is exceeding Dh13 billion.
.According to the World Bank, the standard grade gasoline in the UAE, is sold at Dh1.72 ($0.47) per litre, which is less than half of the global average price of $1.21 (Dh4.4) a litre.
.The local UAE fuel retailers, which have to import refined fuel at international prices, are incurring a loss of 74 cents per litre (Dh2.66)
.According to analysts, the UAE needed to raise retail prices by at least Dh1 per litre to partly offset the combined cost of fuel subsidies and operational expenses.

 COUNTRY Prices
 Venezuela $0.02 per litre
 Syria $0.05 per litre
  Libya $0.12 per litre
 Saudi Arabia $0.15 per litre
 Turkmenistan $0.21 per litre
 Kuwait $0.22 per litre
  Iran $0.24 per litre
 Bahrain $0.25 per litre
 Qatar  $0.25 per litre
 Algeria $0.25 per litre



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