The sharp rise in UAE gasoline prices effective 1 August still leaves them substantially below the level in most advanced economies and 75 per cent lower than the average in the UK.
The UAE Ministry of Energy announced that the price of the most popular type of gasoline would rise by 23.6 per cent to AED 2.14 a litre from AED 1.72 per litre.
The new price for Super 98 has been set at AED 2.25 and E Plus at AED 2.07.
The price of diesel is set at AED 2.05. This is 29 per cent lower than its previous price of AED 2.90.
They will be fixed for one month.
Ministry of Energy undersecretary Matar al-Nyadi, who is chair of the federal fuel price committee, said the new prices were based on average global prices for petrol and diesel during the month of July with the addition of transport, distribution and operating costs approved by the cabinet for distribution companies.
Al-Nayadi said the committee would monitor global petrol and diesel prices daily and will announce the prices for the following month on the 28th of each month.
He said the changes would promote “rationalised consumption”, incentivise people to choose fuel-efficient cars and curb the growth in the number of cars in the UAE.
The Ministry of Energy announced on Wednesday last week it would deregulate fuel prices across the country.