A proposal to cut petrol prices in the UAE was approved by the Federal National Council last week and would now go to the Cabinet for approval.

When passed by the Cabinet, it would mean that the current price of Dh1.72 per litre might be cut by 60 per cent, a move that would be welcomed by a lot of people in the UAE.

"This is awesome," says Jenny Sanders, a British resident of Dubai. "It's a pity I am planning to leave, because I would like to make benefit of that!"

For Lisa, an Armenian Syrian passport holder, it would be a big relief. "I live in Sharjah, but I work in Jumeirah. I have to fill my tank every two days with Dh50 of petrol. This would save me a lot of money," she says happily upon hearing the news.

The proposal to subsidise petrol comes after complaints of the Federal National Council that petrol in other GCC countries is sold at much lower rates, although the UAE is not short of oil reserves.

The petrol price in the UAE is the third highest in the Arab World after Syria and Tunisia, which does not fit a country that is ranked seventh in the world with an oil reserve of 97.8 billion barrels or 6.65 per cent of the world's oil reserve, said a report presented by a committee that was formed to study the viability of subsidising petrol.  

"A lot of other countries are already subsidising petrol," says Hassan Ghais, an Emirati citizen of Dubai. "This would be a very good initiative that will not only positively affect individuals, but businesses as well. A lot of businesses have high transportation costs.

“The good thing about this proposal is that it will stabilise the prices of petrol, they will become less dependent on oil price fluctuations," Hassan says.

Earlier this year it was proposed that only Emiratis would benefit from reduced petrol prices. "I am happy this idea is out of the air," says Fairoz Uthman, an Indian resident of Dubai. "We are all paying a lot for petrol prices!"