The UAE federal government has been fixing retail prices for petrol and diesel fuel at levels below retailers’ cost for the past many years. Prices remained also unchanged this year even as crude oil rose in May to two and half year highs.
In 2010, the government allowed two increases in prices. Regular fuel now sells in the Emirates for 1.72 dirhams, or $0.47 per liter, or $1.88 a gallon. In comparison, the average price in the U.K. was $9.88 a gallon and $3.65 a gallon in the U.S. Saudi Arabia, the world’s biggest oil exporter, charges $0.17 a liter at the petrol stations.
However, oil prices have gone up to the highest since peaking in 2008 to average $94.60 a barrel in the first quarter of 2011 compared with $78.88 in the same period last year and $43.32 in 2009. Crude oil hit a two and half year high of $114.83 last month.
