The Fuel Price Committee, chaired by Dr. Matar Al Nyadi, Under-Secretary for the Ministry of Energy, yesterday announced the gasoline and diesel prices for the month of August 2015 across all petrol stations in the UAE.

The announcement was made at the committee's meeting that was attended by its members including Younis Khouri, Under-Secretary for the Ministry of Finance, Abdullah Salem Al Dhaheri, CEO of ADNOC Distribution, and Saif Al Falasi, CEO of Emirates National Oil Company (ENOC).

Effective from August 1st, the new gasoline prices will be: Diesel Dh2.05, Super (98) Dh2.25, Special (95) Dh2.14, and E Plus (91) Dh2.07.

All petrol stations in the UAE will retail diesel at Dh 2.05 per litre instead of the previous Dh 2.90, dropping 85 fils per litre or a 29% drop. Gasoline (95 Octane) will be sold to consumers at Dh 2.14 per litre instead of the previous Dh 1.72, with a 42 fils increase in litre price to represent a 24% hike.

Dr. Matar Al Nyadi said the committee based the new prices on the average global prices for gasoline and diesel during the month of July with the addition of transport, distribution and operating costs - as approved by the cabinet for distribution companies.

He added that the Fuel Price Committee will monitor the global prices of gasoline and diesel on a daily basis and will announce the prices for the following month on the 28th of each month based on average global prices during that month.

Al Nyadi said that the reduction of diesel prices for August from Dh 2.90 to Dh 2.05 will serve as a stimulating factor for the economy. This will enhance the competitiveness of the national economy, reduce the prices of commodities and eventually reflect positively on the economy.

He added, "The ministry has coordinated with all relevant entities in the country including the Ministry of Economy and the Supreme Committee for Consumer Protection to monitor the movement of prices and safeguard the rights of consumers. This will ensure that people across the country benefit from lower diesel prices, which would mean lower operating costs for a wide number of vital sectors such as industry, shipping and cargo.

"As for the increase in gasoline prices, the impact on individuals will be minimal as the prices for cars with 4 cylinders will increase on average by nearly Dh18, for 6 cylinder on an average by nearly Dh25 and 8 cylinder by Dh45. Such an increase would not create an additional burden on car owners with limited incomes. Additionally, it will promote rationalised consumption and incentivise people to choose most fuel efficient cars, while curbing the increase in the number of cars on the country's roads in the future."