Business | Oil & Gas
Residents unhappy with fuel price rise
Some believe third increase this year will unleash the inflationary spiral as transportation costs skyrocket
- By Iman Sherif, Staff Reporter
- Published: 00:00 August 23, 2010
- Image Credit: MEGAN HIRONS MAHON/Gulf News
- Most of the residents surveyed by Gulf News are unhappy with the proposed increase in fuel prices in the UAE, the third this year.
Abu Dhabi: Following the likely move to increase the price of fuel for the third time in less than three months, a Bahraini salesman, who commutes between Dubai and Abu Dhabi on a daily basis, is considering leaving the UAE to seek work elsewhere, calling the decision "unjustifiable".
While the price of oil remains stable in the world market, the UAE increased the cost at the pump by nearly 40 per cent in the past three months.
A Gulf News poll of residents elicited near unanimous response against the fuel price rise decision.
"We as Bahraini's compare the petrol price to the one in the GCC countries and can't see a reason for this increase. My Bahraini family and friends talked a lot about the price hike and find it unreasonable. I live in Dubai and work in Abu Dhabi, so this rise has impacted my life and put a considerable burden on my budget," said Mohammad, the salesman of car-workshop.
"The petrol rise has, in return, caused the price of many indispensable products like vegetables and fruits to rise. Frankly speaking, we came to the UAE to make money. If we can't fulfil our goal then we will just leave, and the UAE will not be a place of preference to Arab expatriates anymore," Mohammad added.
Dr Mohammad Al Aboudi, an Emirati professor at the Emirates University, is surprised at the rise. "If we compare the petrol price in the UAE to Saudi Arabia, we will find that petrol in Saudi Arabia is sold at half price. Any increase in prices should be studied carefully, or else prices of endless chain of goods will increase as well. Traders will double the price of their products which will affect the consumer and result in an inflation that will impact the UAE economy."
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Mohammad, an Egyptian businessman, feels the decision came too soon after the second rise. "In my feeling it's an indirect way of taxation and a way of paying the companies' debts by charging it to the public. The increase in price came out too soon, and with no explanation."
Lebanese university professor I.A. says the rise should be blamed on petrol companies offering high salary packages to certain employees. "It's not fair for petrol companies to hire westerners with remarkably high packages, and end up imposing their loss on the public."
A Moroccan administrator, who has lived in Abu Dhabi for six years, feels she cannot cope with the high cost of living recently experienced in the capital city. "I don't know how far I can cope with the rising prices."
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