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A petrol pump attendant at an Eppco filling station. Image Credit: Gulf News Archives

Abu Dhabi: The petrol price of Octane 95 (Special), which is commonly used by motorists, has gone up by 42 fils from Dh1.72 per litre at present to Dh2.14 per litre -- or 24 per cent -- for the month of August, the UAE Ministry of Energy has announced on Tuesday.  

Diesel prices have been reduced from Dh2.90 to Dh2.05 per litre. The price of diesel has been reduced by 85 fils per litre.

The new prices for the month of August were announced by the Ministry of Energy after a high-level meeting with the officials from the distribution companies and the Ministry of Finance.

The price of Octane 98 (Super) petrol has been fixed at Dh2.25 per litre and Octane 91 (E-plus) at Dh2.07 per litre.

There has been an increase of about 24 per cent in the price of Octane 95 petrol (Special), and 23 per cent increase for Octane 98 (Super).

Diesel prices have reduced by 29 per cent.

Existing petrol prices in the UAE (Ministry of Energy website)



Website crashes

Meanwhile, the Ministry of Energy website crashed in the morning due to high number of people visiting the website to get information pertaining to new fuel prices. The problem was rectified later.

This is the first time the UAE government is undertaking such an initiative. The government had subsidised fuel for three decades, which kept prices lower than the international average.

The new prices are based on average international levels and will be reviewed by a fuel price committee every month prior to its implementation in the UAE.

Credit ratings agency Moody’s said the new fuel price measures are credit positive for the UAE and Abu Dhabi, as they will bolster government finances dented by the downturn in global oil prices.

Average

Dr Matar Al Nyadi said the committee based the new prices on the average global prices for gasoline and diesel during the month of July with the addition of transport, distribution and operating costs - as approved by the Cabinet for distribution companies.

According to him, Fuel Price Committee will monitor the global prices of gasoline and diesel on a daily basis and will announce the prices for the following month on the 28th of each month based on average global prices during that month.

He noted that the reduction of diesel prices for August from Dh2.90 to Dh2.05 will serve as a stimulating factor for the economy.

"This will enhance the competitiveness of the national economy, reduce the prices of commodities and eventually reflect positively on the economy," he said in a statement. 

He added: “The Ministry has coordinated with all relevant entities in the country including the Ministry of Economy and the Supreme Committee for Consumer Protection to monitor the movement of prices and safeguard the rights of consumers. This will ensure that people across the country benefit from lower diesel prices, which would mean lower operating costs for a wide number of vital sectors such as industry, shipping and cargo.

As for the increase in gasoline prices, the Ministry of Energy said the impact on individuals will be minimal as the prices for cars with four cylinders will increase on average by nearly Dh18, for 6 cylinder on an average by nearly Dh25 and 8 cylinder by Dh45.