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ABU DHABI, July 22 (Reuters) - The United Arab Emirates will liberalise domestic gasoline and diesel prices from Aug. 1, the energy ministry said in a statement carried by state news agency WAM on Wednesday.
Domestic fuel prices are currently among the lowest in the world because of heavy state subsidies. Allowing prices to move more freely would reduce pressure on the state budget and could be one of the UAE's biggest economic reforms in recent years.
The ministry said it would decide on the 28th of each month levels of domestic fuel prices in the following month. It said gasoline and diesel prices would now be based on an average of global prices, but did not give details of the pricing formula or say whether prices would rise all the way to global levels.
The reform will support the UAE economy and save fuel, the ministry said.
(Reporting by Maha El Dahan; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
Domestic fuel prices are currently among the lowest in the world because of heavy state subsidies. Allowing prices to move more freely would reduce pressure on the state budget and could be one of the UAE's biggest economic reforms in recent years.
The ministry said it would decide on the 28th of each month levels of domestic fuel prices in the following month. It said gasoline and diesel prices would now be based on an average of global prices, but did not give details of the pricing formula or say whether prices would rise all the way to global levels.
The reform will support the UAE economy and save fuel, the ministry said.
(Reporting by Maha El Dahan; Writing by Andrew Torchia) ((andrew.torchia@thomsonreuters.com; +9715 6681 7277; Reuters Messaging: andrew.torchia.thomsonreuters.com@reuters.net))
