UAE TO REMOVE FUEL SUBSIDYby Neha Swaminathan | 23-07-2015 22:39 |
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 The Ministry of Energy has announced that fuel prices would be deregulated as of August 1, 2015. A new pricing policy linked to global prices will be adopted. This move is aimed at supporting the national economy, lowering fuel consumption, protecting the environment and preserving national resources. Suhail Al Mazroui, Minister of Energy, has said "The decision to deregulate fuel prices has been taken based on in-depth studies that fully demonstrate its long term economic, social and environmental impact. The resolution is in line with the strategic vision of the UAE government in diversifying sources of income, strengthening the economy and increasing its competitiveness in addition to building a strong economy that is not dependent on government subsidies." Deregulating fuel prices would help decrease fuel consumption and preserve natural resources for future generations. It will also encourage individuals and companies to adopt fuel-efficient vehicles, including the use of electric and hybrid cars. This will also encourage the use of public transport. He also said that a committee will hold periodic meetings and monitor global prices. On the 28th of each month, the committee will announce the prices for the following month. The transport sector was responsible for 22 per cent of the total greenhouse emissions in the UAE in 2013 amounting to 44.6 million tonnes of carbon dioxide. Environmentalists have hailed the move to deregulate the price of petrol as a serious step towards a sustainable and eco-conscious future. Adnan Amin, director general of the Abu Dhabi-based International Renewable Energy Agency, said "This move represents a visionary initiative for the UAE and will strengthen the country's ability to meet its diversification strategy and contribute to the international community's efforts to reduce carbon emissions." Fahad Shehail, chief operating officer of Bee'ah, Sharjah's environment agency, also appreciated the move saying, "This announcement will lead to a safer and cleaner country for our present generation, while also ensuring that future generations inherit a land that is safe, healthy and free from preventable pollution. The move would reduce carbon dioxide emissions, protect the local environment and improve the health of communities. Furthermore, this decision will ensure the preservation of our valuable natural resources while encouraging people to consider more sustainable methods of transport." |
