Proposal to cut UAE fuel prices approved

A proposal to reduce petrol prices to match other Gulf nations was approved by the Federal National Council (FNC), UAE newspaper Gulf News reported on Tuesday.

The FNC is the UAE government's advisory body but it cannot initiate new legislation.

“The Federal National Council urges the Government to increase subsidies to petrol and fuel prices so that they match those in other Gulf countries,” Gulf News reported, citing the proposal submitted to the cabinet.

However, the proposal, which agrees on selling petrol at a blanket price for citizens and foreigners, will not take effect until it is passed by the cabinet.

If approved by the cabinet, the prices will be cheaper by up to 60 per cent, the report added.

UAE is currently selling petrol at $0.32 a litre.

At $0.16 a litre, Saudi Arabia offers the second cheapest fuel price in the world after Venezuela, while Qatar's heavy subsidies allow it to sell fuel at $0.19 a litre, well below the Middle East average of $0.56, according to World Bank data.