UAE to Cut Energy Subsidies

UAE to Cut Energy SubsidiesUAE to Cut Energy Subsidies

The UAE will lower domestic prices for gasoline and diesel in November, the country's ministry of energy said on Wednesday. The price of a liter of octane 95 gasoline will drop 5% to Sh1.70 ($0.46) at the start of November from Dh1.79 in October, the ministry said on its Twitter account. The domestic diesel price will fall to Dh1.87 in November from Dh1.89 in October, the ministry said. In July, the UAE said it was shifting from a system of fixed, subsidized fuel prices to adjusting prices monthly in response to global trends. It did not reveal details of its new formula nor say whether subsidies would be removed entirely, but announced that prices would be "based on the average global prices with the addition of operating costs". On Tuesday, Saudi Oil Minister Ali al-Naimi said the kingdom is looking at raising domestic energy prices, confirming that it could cut a lavish system of subsidies blamed for waste and surging fuel consumption.