Effective March 1st, drivers in the United Arab Emirates (UAE) are facing a significant increase in petrol prices. The Ministry of Energy announced a rise of 15-16 fils per litre for all gasoline grades, translating to a cost increase of approximately 5-6% for most drivers. However, some individuals, particularly those who rely heavily on their vehicles for work or travel long distances, are experiencing a more substantial impact, with estimates suggesting a potential rise in fuel spending of up to 20%.
This price adjustment comes as the UAE, like many other countries, grapples with rising global oil prices. The Ministry of Energy, which revises fuel prices monthly based on global benchmarks and operational costs, emphasized the need to align domestic prices with international market trends. However, the decision has sparked concerns among residents, especially those already facing the pressure of rising costs of living.
Mohammed AbuNael, a resident of Sharjah and marketing executive in Dubai, shared his apprehension: "This surge in fuel prices will undoubtedly impact my monthly budget. I anticipate my fuel spending to increase by nearly 20% this month, exceeding Dh1,000." AbuNael, who relies on his car for work and travel related to his job, highlighted the additional burden during Ramadan, where frequent meetings across different cities are expected.
The price hike has also raised concerns about its potential impact on other sectors. Transportation companies, logistics providers, and individuals who rely on personal vehicles for deliveries or ride-hailing services are also expected to feel the pinch. This could potentially lead to adjustments in service fees or delivery charges to offset the increased fuel costs.
While the government has assured its commitment to mitigating the impact on low-income earners through existing social support programs, the immediate concern for many residents lies in adjusting their budgets and potentially altering their driving habits to cope with the higher fuel costs. The long-term implications of this price adjustment on the broader economy remain to be seen, with analysts closely monitoring its effect on inflation and consumer spending patterns in the UAE.
