Markets to be Monitored to Ensure Consumers Benefit from Reduced Diesel Prices and Check Price Hikes

New Prices Effective from August 1, 2015

The Fuel Price Committee, chaired by His Excellency Dr Matar Al Nyadi, Undersecretary for the Ministry of Energy, today announced the gasoline and diesel prices for the month of August 2015 across all petrol stations in the UAE. The announcement was made at the committee’s meeting that was attended by its members including His Excellency Younis Khouri, Undersecretary for the Ministry of Finance, His Excellency Abdullah Salem Al Dhaheri, CEO of ADNOC Distribution, and His Excellency Saif Al Falasi, CEO of Emirates National Oil Company (ENOC). Effective from August 1, 2015, the new gasoline prices for the month of August 2015 will be as below: Diesel Gasoline Super (98) (95) Special E Plus (91) AED 2.05 AED 2.25 AED 2.14 AED 2.07 All petrol stations in the UAE will retail diesel at AED 2.05 per liter instead of the previous AED 2.90, dropping 85 fils per liter or a 29% drop. Gasoline (95 Octane) will be sold to consumers at AED 2.14 per liter instead of the previous AED 1.72, with a 42 fil increase in liter price to represent a 24% hike. His Excellency Dr Matar Al Nyadi said the committee based the new prices on the average global prices for gasoline and diesel during the month of July with the addition of transport, distribution and operating costs - as approved by the Cabinet for distribution companies. He added that the Fuel Price Committee will monitor the global prices of gasoline and diesel on a daily basis and will announce the prices for the following month on the 28th of each month based on average global prices during that month. He noted that the reduction of diesel prices for August from AED 2.90 to AED 2.05 will serve as a stimulating factor for the economy. This will enhance the competitiveness of the national economy, reduce the prices of commodities and eventually reflect positively on the economy. He added: “The Ministry has coordinated with all relevant entities in the country including the Ministry of Economy and the Supreme Committee for Consumer Protection 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. As for the increase in gasoline prices, the impact on individuals will be minimal as the prices for cars with four cylinders will increase on average by nearly AED18, for 6 cylinder on an average by nearly AED25 and 8 cylinder by AED45. Such an increase would not create an additional burden on car owners with limited incomes. Additionally, it will promote rationalized consumption and incentivize people to choose most fuel efficient cars, while curbing the increase in the number of cars on the country’s roads in the future.