One litre of ‘octane 95’ gasoline will be 1.96 AED from 1st of September this year. This was declared by the ministry of energy on Thursday. After the abrupt price rise in August the UAE decided to cut the cost of gasoline for September.
The minister mentioned that a litre of ‘octane 95’ will cost 1.96 Dhs from the first day of September. That would be 8.4% less than the price of August. In August ‘octane 95’ would cost 2.14 AED. The price of ‘octane 98’ also been reduced. It will be 2.07 AED now, after reducing the price to 8%.
A reduction of 9.3% in the price of diesel was fixed by the ministry as well. Compared 2.05 AED to the price of August the price of September would be 1.86 Dhs per litre.
Matar AL Nayadi the undersecretary at the ministry of energy said, these fuel rates are built on the average of world rates for fuel like gasoline and diesel with the adjunct of operating costs and profit amount of the allotting firms. The fuel cost board will hold a meeting on the 28th of September to decide and agree on the rates for gas for October.
The United Arab Emirates declared that, the cost of patrol, diesel and gasoline would not face this restriction from August. A brand new rate policy levelled with the world rate would be introduced.
In August the petrol rates raised by 24% and the diesel rates dropped by 29%.
But the world rate of fuel dropped rapidly in August. Moreover it touched the ‘six and a half years low’ this week right after the crush of the stock market of China. And worries about oversupply rose up.
The price of Brent crude is wondering around forty-four dollars per barrel. But it was 115 per barrels last year.
Experts believe that, these low rates will grant the United Arab Emirates to easily changeover to the new petrol policy.
Denationalizing fuel rates will help the nation’s finance and will expand the economy. This was said by the Wales and the institute of Chartered Accountant in the UK.
This new policy will save the UAE around 550 million dollars. This will happen by the end of the year 2015. This is a bit over 0.1% of the nation’s domestic gross product.