What’s On has details of new fuel price rules in the UAE from August 1. This step links UAE gasoline prices to global oil markets.

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If you were planning on upgrading your wagon to a 4×4 gas-guzzler this summer, you might want to think twice now.

In a statement carried by news agency WAM this morning, the UAE is set to link its gasoline and diesel prices to global oil markets from as early as August 1.

Price comparison

Up until now, UAE residents have enjoyed some of the lowest domestic fuel prices in the world. This is due to heavy government subsidies that have helped keep prices lower than the norm.

Unleaded gasoline in the UAE typically sells for Dhs1.83 a litre while the US price of premium-unleaded gasoline is roughly Dhs3 a litre.

The price increase is part of a state plan “aimed at supporting the national economy, lowering fuel consumption, protecting the environment, in addition to building a strong economy that is not dependent on government subsidies”, Minister of Energy Suhail Al Mazrouei said.

The ministry also said that it would decide on the 28th of each month the levels of domestic fuel prices for the following month. Prices are set to be based on an average of global prices, but the statement did not give full details of the pricing formula or say whether prices would rise all the way to global levels.