No plans for subsidy to offset hike in fuel prices

Abu Dhabi: The Government has no plans to provide subsidies to offset the increase in prices of goods and services caused by the hike in petrol prices, Obaid Humaid Al Tayer, Minister of State for Financial Affairs, told the Federal National Council (FNC) yesterday.

Al Tayer was responding to a question submitted by Khalid Ali Bin Zayed Al Falasi, a member from Dubai.

Al Tayer said in a statement the Government has no intention to offer any subsidies to offset the increase in petrol prices.

Al Falasi said he was surprised by the response. "I thought the government had to intervene to help the low and middle-income people cope with the increase in prices caused by the hike in petrol price."

He said he hoped the minister would come to discuss the issue with him.

On Al Falasi's suggestion, the FNC adopted a recommendation that the government develop a plan to help the low and middle-income people cope with the impact of hiking petrol prices, which led to an increase in prices of goods and services.

Complaint

The recommendation will be submitted to the Cabinet. After years of complaints against monopoly of petrol retailers in Dubai and the Northern Emirates, the UAE federal authorities recently decided to increase petrol prices in the UAE by 11 per cent.

The price increase was 15 fils per litre, eventually upping the price per litre from Dh1.37 up to a Dh1.52.

Retailers such as ENOC/EPPCO and Emarat, have always claimed that they buy petrol at international market rates and make constant losses due to the government price cap, earning money only via additional services.