Dubai: UAE has announced deregulation of fuel prices across the nation starting August 1, 2015. According to UAE’s WAM, here is a look at the new pricing mechanism and how it will work:
• The ministries of Energy and Finance will act as the government’s representatives in a committee set up to review fuel prices in UAE every month. They will focus on consumer protection and ensure that petrol prices are balanced according to international standards, according to Dr Matar Al Nyadi, Undersecretary of the Ministry of Energy and Chairman of the petrol and Diesel Prices Committee.
• The fuel price committee also includes as members the Undersecretary of the Ministry of Finance, CEO of Adnoc Distribution, and CEO of Emirates National Oil Company (Enoc).
• The pricing mechanism will be structured in a way that it does not rely on just one global market and will facilitate distribution companies to make reasonable profits and to limit their losses while offering premium services.
• The committee will urge fuel distribution companies in the UAE to increase their operational efficiency to lower their costs, and eventually impact positively the prices of petrol and diesel at petrol stations across the country.
• On the 28th of each month, the committee will announce the prices for the following month. In line with this decision, prices of petrol and diesel for August will be announced on July 28, based on the average global prices with the addition of operating costs.
• The Ministry of Energy has assigned a dedicated number (0565467942) and an email ID (fuelprice@moenr.gov.ae) for public inquiries on the new deregulated fuel prices.
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