Petrol prices in the UAE are still some of the lowest in the world
Even if they have hit an all-time high since August 2015…
Petrol prices hit an all-time high this month with the cost of Super 98 rising to Dhs2.63 per litre at the pump.
There’s no denying that this is pricey compared to what residents are normally accustomed to paying for their fuel. It turns out, however, that compared to many other countries, the UAE still boasts some of the lowest petrol prices in the world.
The Khaleej Times published a report singling out Nordic countries like Norway and Sweden as having fuel costs that are higher than the UAE by upwards of 250 per cent and 220 percent, respectively.
Conversely, Saudi Arabia boasts fuel prices that are nearly less than half of those in the UAE.
The report attributes the comparatively low cost of fuel in the UAE to the fact that many countries have imposed high taxes on petrol, while the UAE only charges a five per cent value added tax (VAT).
In August of 2015, the UAE Ministry of Energy began setting fuel prices based on the global average, whereas prior to that the cost of petrol was heavily subsidised by the government.
According to the report, prices in the US are around 25 per cent higher than the UAE, with India and the UK more expensive by 73 per cent and 156 per cent, respectively. That certainly puts things into perspective.