Let’s adapt and move on
The news about the decision by the UAE authorities to deregulate fuel prices certainly came as a shock to most expatriates (‘UAE to scrap fuel subsidies’, Gulf News, July 23). However, it may be possible that a lot of good will come out of it. Most of us have grown up in our home countries, feeling the pinch of high fuel prices, thus forcing ourselves to adapt to a cheaper means of living, be it through transport or cooking. Here in the Gulf, we have not felt the pinch as yet. Vehicles are easily made available through attractive bank loans and cheaper fuel prices have caused most of us to own more than one vehicle.
With the deregulation of fuel prices in place, we will need to adjust according to our budget. The UAE now has an improved transport system, something that was not there a few years ago. More people will be able to opt for public transport. On the other hand, I think we will also see the prices of commodities and essentials gradually rising on account of the increase in transportation costs. Hence, I believe even if you do not own a car, you would still be indirectly affected, due to rising costs.
The UAE authorities must also incentivise carpooling, which is an effective means of saving fuel and protecting the environment.
I must admit, there will be a few ripples at the beginning. But humankind has always been known to adapt and move forward. Life will go on.
From Mr Naveen Frank
Dubai
Bridge the gap
Higher fuel prices may encourage the use of public transport, provided the availability is frequent enough to serve the purpose. To my knowledge, private taxis are expensive when considering a common man’s salary and buses are not frequent enough, as there is often a half hour gap between two buses on the same route. This is a significant time gap, during the office rush hour in the mornings. Of course, salaries will have to be increased in order to retain the increased cost of living. On the one hand, it places a burden on businesses and on the other hand, it reduces the attractiveness of the country.
Now, regarding the issue of the environment, the public’s level of awareness about environmental pollution and energy saving needs to be developed further through print and electronic media, so that people are aware of different ways of reducing expenses and avoiding traffic congestion through carpool systems, among other methods.
From Mr Mumtazunnisia Khan
UAE
Quick commuting is critical
I think this move has come too early, because the public transportation system has to improve a lot more, before it is able to replace private transport — especially between neighbouring emirates like Dubai and Sharjah. In such commutes, time bound transportation is important. This move is excellent, but a bit premature. Instead, the aim should be to reduce the number of cars on the streets by increasing their prices and controlling the way they are purchased. Steps should be in place to ensure it is not so easy for any and everyone to buy a car or drive. This ends up causing traffic congestion and pollution.
From Mr Mohammad
UAE
Website comment
Not much effect
I think increasing fuel prices won’t affect anyone and people won’t feel it too much either, because they don’t have alternative options and will have to adapt.
From Mr Malek Hamad Mahmoud
Dubai
Facebook comment
An economic impact
It’s an interesting way to help decrease fuel consumption. Deregulation means foreign companies get the freedom to do what they want and in return, there will be more opportunities for business in the country and the authorities can also charge them more. Oil prices directly affect inflation.
From Mr Shahzaib Arshad
Sharjah
Facebook comment
Develop Metro lines
Our cost of living is already high, in many ways. I wonder why the subsidies couldn’t be reduced. I also think this decision would have been more effective once the Metro lines to other emirates, or even to other areas in Dubai, were completed.
From Mr Tarek M. Tabbara
Dubai
Facebook comment
Limited options
The authorities want people to use public transportation. However, using public transport means people will spend more time commuting. The authorities need to think further about cases of when a person would be able to use public transport. I think, in many of the cases, not everyone has the time.
From Mr Monis Zahgeer
UAE
Facebook comment
Reducing pollution
I believe that one of the reasons for such high temperatures in the country is the heavy amount of traffic, which causes pollution. Dubai’s authorities have done a remarkable job in infrastructure development, but traffic is something that can be controlled by increased cost. Many people just waste petrol, as it is not that costly in this part of this world.
The increase in price will help in reducing pollution and traffic congestion, permit lesser accidents and simultaneously help save Nature.
From Mr Tarun
UAE
Full name withheld by request
Wait and watch
Like Salik, people will either pay for it or avoid it. An increase in fuel prices, however, will only add to the ever increasing problem of inflation. You can either afford to live here and prices do not matter or you cannot, and if not, it is time to go. But let’s see what the prices are like, first. Surely, they will not be as high as in the UK and other parts of Europe.
From Mr David Woodward
UAE
Likely to see inflation
Fuel is already costly in the UAE, compared to other parts of the Gulf. If the price goes higher, then all the commodities would also go up. At this point, I think inflation would start.
From Mr Syed Muddasir
UAE
Fuelling the growth of the Gulf
A substantial portion of lost oil revenue is still recoverable locally, if the administration in Gulf countries do away with the subsidy on it. This will not only enable oil prices to reach a competitive level, but also discourages unnecessary vehicle usage. Since the price of petroleum products in the Gulf is cheaper compared to the rest of the world, chances of its misuse are very high. Reckless fuel consumption causes environmental damage and traffic congestion.
The economy of the UAE revolves around oil, logistics, tourism and civil aviation. As we know, the Euro crisis will have its resonance in the tourism industry. The logistics of it is linked with the hydrocarbon business. The aviation sector in the region is facing stiff competition from other operators around the world. Widening budget deficit and expenditure cutting will have a long term impact on the economy. The sudden fall in the property price is the culmination of all these causes. Expo 2020 will give renewed vigour to the UAE economy in the near future and create thousands of job opportunities. In order to keep the growth trajectory beyond 2020, more contingency plans are required.
From Mr Girish R. Edathitta
Dubai
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