UAE slashes fuel subsidies, announces 24 percent price hike

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Published: July 29, 2015 11:39:10 AM

The United Arab Emirates has slashed gasoline subsidies, raising the cost of a liter of regular gasoline by 24 percent amid globally low oil prices that have cut into the country's revenues.

The United Arab Emirates has slashed gasoline subsidies, raising the cost of a liter of regular gasoline by 24 percent amid globally low oil prices that have cut into the country’s revenues.

The UAE announced Tuesday that starting Aug. 1 drivers will pay 2.14 dirhams (58 cents) per liter of gasoline at the pump instead of 1.72 dirhams (47 cents), or about $2.21 a gallon instead of $1.78.

Despite the move by the Energy Ministry, officials will still have a hand in setting prices. Average international prices will be used as a benchmark to announce prices for the following month.

The price of diesel will meanwhile be lowered. Drivers will pay 2.05 dirhams a liter instead of 2.90 dirhams, a 29 percent decrease.

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