As per energy ministry statement, The UAE will liberalise domestic gasoline and diesel prices from August 1. Domestic fuel prices are currently among the lowest in the world because of heavy state subsidies. Allowing prices to move more freely would reduce pressure on the state budget and could be one of the UAE’s biggest economic reforms in recent years.
The ministry said it would decide on the 28th of each month levels of domestic fuel prices in the following month. It said gasoline and diesel prices would now be based on an average of global prices, but did not give details of the pricing formula or say whether prices would rise all the way to global levels.