UAE to raise gasoline prices next week
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Fuel distribution companies in the United Arab Emirates (UAE) will raise their pump prices from next Wednesday, the state news agency WAM reported Saturday.
Gasoline prices will be raised by 15 fils (about 4 U.S. cents) at various fuel stations nationwide as of April 21, the report said, quoting a statement by the firms.
The prices will be liberalized and increased gradually as part of efforts to reduce increasing losses being suffered by companies due to "continuous high cost of the product," it added.
In January, the Dubai government-owned Emirates National Oil Company (ENOC), the second largest petroleum fuel distributor in the Gulf nation, called for an end to controls on gasoline prices, saying it has been hit financially by rising costs for crude oil.
ENOC Chief Executive Saeed Khoory reportedly said the company was losing money with every sale at its 170 service stations in the UAE while the price is fixed at 1.37 dirhams (about 37 cents) per liter.
The UAE government should either offer direct subsidies for retailers to cover their losses or let gasoline prices rise, he said.
According to The National, an Abu Dhabi-based English daily, Saturday's announcement marks a significant change in energy and social policies for the oil-rich federation's government, which until now has capped domestic gasoline prices.
It also could mean that the UAE will be the first Gulf oil producer to allow domestic fuel prices to reflect those on international markets, the newspaper said.
