It’s relieving news for all the auto-mobilist and households in the UAE; as fuel prices have dropped to their lowest level in five years in coming month, which will also help ease inflation in the country.
Last week in this month the Ministry of Energy announced, the diesel rates per ltr are at their lowest level since 2011. Last July, the UAE government initiated the deregulation terms for gasoline and diesel by scraping the government subsidy. The new pricing policy is connected to global oil cost.
Because of The first price adjustment, all the motorists got worried of rise of the price, which was around a quarter per cent, but now under the new policy brings the fifth successive downward revision to relief for all private car owners and commercial vehicles' owners.
Falling fuel prices also helped brought down expansion in the country. The latest data shows that expansion across the UAE dropped to 3.5 % in Nov 2015 differentiated to 3.7 % in Oct and 4.43 % in Jul 2015.
During 2016, UAE consumer price index is anticipated to be 3 %, 3.25 % and 3.6 % considering the oil cost at 45$ per barrel, 55$ and 65$.Oil sector used to generate 65 % of government profits in 2014, but with the reduce in oil cost oil sector is anticipated to generate only 50 % of the government profits in 2015.
Oil prices peaked after 2008 to reach about 140$ per barrel and by the end of 2015 the price has fallen to less than 40$ per barrel. And during the same time, the oil exporting country like the UAE saw an expansion rate of around 13% and now it dropped to less than 4% after the deregulation of fuel prices.
From February, the new prices for petrol will be valid, announced by The UAE’s Ministry of Energy. The petrol and diesel will cost lower than earlier oil prices in coming month.
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