Dubai: Motorists in Dubai believe that the removal of federal government’s petrol subsidies will not change their driving habits, despite an increase by as much as 28 per cent in August alone.

The cost of petrol increasing next month, the government announced, will be based on an international average price of retail fuel prices.

Unleaded Gasoline 98 will rise by 23 per cent to Dh2.25 a litre, unleaded Gasoline 95 will increase by 24.4 per cent to Dh2.14 a litre, Gasoline E Plus 91 will go up by 28.5 per cent to Dh2.07 a litre. The cost of a litre of diesel will decrease by 29 per cent to Dh2.05.

Ajit Dushing, who works in sales, told Gulf News the increase would not deter him from how he uses his car, which he relies on for work.

“There is no other option to drive,” he said as he waited to pay for a tank of petrol at the Enoc Eppco petrol station.

A newly established fuel pricing committee will meet on the 28th of every month to determine the price of petrol for the following month. Tuesday’s announcement of August prices followed the committees first meeting.

While Dushing said the price increase would not encourage him to use public transport, he said that the change will be “costly” for people who regularly travel between Abu Dhabi, Dubai and Sharjah. Dushing’s employer pays for his petrol.

The increase in petrol prices follows 12 months of low global oil prices that have dented oil-based economies. But the UAE government has said the change in its petrol subsidy policy is a reaction to environmental concerns, not falling oil revenues.

Abdul, who asked that his surname not be published, conceded that the increase in prices cannot be resisted.

“We cannot do anything … this is the new system,” he told Gulf News at the Eppco Petrol Station along Al Wasl Road near Safa Park.

Others voiced concern that the increase in petrol price is another added cost among a string of many costs that have made living in the UAE increasingly expensive.

“The housing costs are increasing. The costs of schools are increasing. You can’t fight what is happening so it will become a struggle. I know a lot of people who are struggling with living,” said Kerry Arlando, 36, a mother of two boys.

Unlike in other countries across the Middle East, the increase in prices in the UAE is expected to spark no reaction.

“Well it is forced on us. We will have to go with the flow. Whatever they decide. If they increase the prices we will pay. If they don’t we won’t pay,” said Omar El Masry, 35, Emirati.

Experts have seen that the removal of the subsidy is a positive sign in the development of the UAE’s economy. However, on an individual level, that would mean more pressure.

“It is expensive. This is an oil exporting country. In Saudi, I filled my whole tank for Dh7. Here I used to pay Dh83 with the old price. I don’t know how much will I pay now. This will affect the whole economy,” Dr Obaid Yousuf, a Mercedes driver.

Owners of small businesses are expected to witness a burden in terms of costs after the increases. Changes in fuel prices might be passed on to the customers if they face losses. However, fuel price increases can affect businesses in terms of transporting their employees.

“It won’t affect me personally but I have a company and I know it will affect our revenues ... because we have to pay for the buses that will transport the labour. I can’t raise the prices for the customers so I will just take it from the costs,” said Mohammad Hany, a businessman.

Simlarly, Bayrin Guzel, who heads two businesses in the UAE that use a fleet of cars, said the increase in prices is likely to change how the company uses cars but that would not change his personal usage of vehicles.

A number of drivers told Gulf News the increase will be felt mostly by those who are already living on tight budgets.

“It’s going to affect lower-income earners more, western expatriates won’t be affected,” Barry Conlon told Gulf News at the Emarat Petrol station at the intersection of Al Thanya Street and Shaikh Zayed Road.