No compensation to offset end of fuel subsidies
UAE gov't says nationals will not be given financial support to offset cost of living
Emiratis will not be given any financial support to offset expected increases in the cost of living following the planned deregulation of fuel prices, the government has said.
The Ministry of Energy has drawn up a list of ‘frequently asked questions’ about the new fuel policy on its website.
One question asks: “Will Emiratis be given financial assistance to offset the increase in their cost of living?” and the response is: “The decision does not include such a thing.”
Khaleej Times reported on Monday that there has been speculation about whether or not “additional
services”, such as financial assistance of fuel discount cards, would be provided to Emiratis to compensate them for any increase in cost of living.
The Ministry of Energy’s statement puts an end to this speculation.
The government also suggested car pooling as a way to rationalise fuel consumption in emirates such as Fujairah and Al Ain where public transport provision is limited.
“The same transportation means can be shared by many individuals heading to the same place.”
The UAE announced last week that gasoline and diesel will be deregulated from August 1 and a new pricing policy linked to global levels will be introduced.
Ratings agency Fitch Ratings predicted on Sunday that the removal of transport fuel subsidies may set a “positive fiscal precedent”, particularly for sovereigns whose public finances are under pressure.