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UAE has lowest subsidies on fuel among oil producers
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The UAE has the lowest subsidies on fuel prices among oil producers and experts believe this has contributed to accelerating inflation in the country. Details published in London this week based on 2006 figures showed the UAE did not have any subsidy on diesel prices, while it provided a subsidy of US$10 per barrel of gasoline. Subsequently, Abu Dhabi in the UAE has subsidised diesel.
The figures by the Centre for Global Energy Studies (CGES), which is owned by former Saudi Oil Minister Ahmed Zaki Al Yamani, showed that the UAE had the lowest fuel subsidies at the end of 2006 among 13 oil producers within the Organisation of Petroleum Exporting Countries and other key producers. Conflict-battered Iraq provides the highest diesel subsidy of US$65 per barrel, followed by Iran, which provides US$60 per barrel and Saudi Arabia, with US$57.
Iraq also provides the highest petrol subsidy of US$64 per barrel, followed by Venezuela with US$54 and Iran with US$51.
China came next to the UAE in low subsidies, which stood at US$13 per barrel of diesel and no subsidy for petrol. Experts said the absence of subsidies on diesel and low subsidy on petrol have allied with a spate of price increases over the past year to stoke inflation in Dubai along with higher rents and food prices. – Emirates Business 24|7
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©2007 UAE Embassy In Washington DC
