The Federal National Council session on Tuesday discussed two important issues that affects UAE residents.

While a committee of six FNC members was formed to study effects of reduced petrol prices, the Ministry of Economy said it plans to introduce laws to end market monopoly by certain agencies.

According to an 'Emarat Al Youm', the FNC committee will urge the government to bring petrol prices in line with that of the rest of the GCC nations.

Click here to see how UAE petrol prices have risen in the last 2 years

FNC member Ahmed Al Za’abi asked Mohamed bin Dhaen Al Hamli, Minister of Energy, the reasons for high prices of oil derivatives in the country compared to the GCC nations.

Al Hamli replied that oil prices in the UAE are in accordance with that of the world market.

He said the government is already supporting prices with diesel being sold at Dh3.5 per litre and petrol at Dh1.7. However, members noted that these prices are higher than in other GCC countries.

The minister said the government suffered about Dh8.5bn losses last year by supporting the four distribution companies and fears the losses would hit Dh12bn if the world oil prices increase further. The distribution firms lose about Dh1.20 on every litre sold at the current price, he added.

Click here for a recap on how petrol prices will affect your family budget

Ahmed Al Za’abi, an FNC member, said UAE citizens have the right to get petrol at the same right as their GCC counterparts. Petrol prices are negatively affecting costs of other commodities as well, which is detrimental to development, he added.

Mohammed Ahmed Al Murr, FNC Speaker, said: "Emiratis are a minority and that a majority of the population will benefit from the proposal."

While some members suggested the recommendation be made valid for Emiratis, some others wanted it for all as petrol prices effect costs of most commodities. And thus, a commitee was formed to study the effects of reduced petrol prices.

Law to end market monopoly

Meanwhile, Sultan bin Saeed Al Mansouri, Minister of Economy, on Tuesday disclosed at the FNC session that the government intends to cancel trade licences of agencies that enjoy a monopoly in the market to ensure healthy competition, reported 'Emarat Al Youm'.

However, he added, the law would be flexible in cases where only particular firms ensure quality services.

The ministry is studying various laws such as the Company Law and Industrial Law to reach a decision that will be in line with the  requirements of the proposed Gulf Common Market.

Al Mansouri stressed the proposed law will encourage competition and end monopoly by firms.