The United Arab Emirates, which has been slammed in the past for its high carbon footprint, has become the first Gulf Arab state to scrap energy subsidies, announcing new prices for transport fuels that will come into effect on 1 August. The decision to abolish costly subsidies, which was flagged earlier this month, was followed this week with an announcement on new pricing for all gasoline grades, which are set to be sharply higher, across all seven emirates. The price of diesel, however, will be cut by 29% on average across the UAE but by just less than 13% in Abu Dhabi itself (see table).
The UAE Ministry of Energy said on 28 July that the price of the most commonly used 95 ron unleaded gasoline will go up by 24%, to Dh2.14/liter ($0.58) from $0.47/liter previously. Prices for 98 super gasoline will rise by 23% to Dh2.25/liter and for 91 E Plus by 29% to Dh2.07/liter. Diesel will come down by an average of 29% toDh2.05/liter (prices vary across the UAE), a move that will help mitigate the impact of the price rises on industry, shipping and cargo. Analysts expect the gasoline price hike to have only a minor impact on headline inflation. (CONTINUED - 1008 WORDS)