Huge 'no' to future petrol price hikes

Local media reports had said that petrol prices are to go up again next month. (FILE)

If petrol prices in the UAE rise further, a significant majority (60 per cent) of respondents to the Emirates 24|7 Poll believe that it will put a strain on their budgets.

"Please stop," says Marco in his comments on the story, a view echoed by a majority of the readers.

A quarter of the respondents said that a further price rise would fuel inflation. Tom also expresses this sentiment in his comment on the story. "This will make living in Ras Al Khaimah and working in Sharjah or Dubai more expensive," he points out.

Taken together the 'nays' to future oil price hikes reach an overwhelming 85 per cent.

However, there is a substantial segment that believes the attempt to reach parity with international pump prices is rational.

"We are very blessed in the UAE that we are not taxed on petrol as is the practice in Europe or the USA, " a reader calling himself KhdMohd. "In fact, the Europeans are now paying around Dh6.5 per litre. Plus, petrol in the UAE is still cheaper than bottled mineral water."

Dastagir points out that: "This move may push more people to use the public transport system. Yet, even at Dh2.19 per litre, it is less than half of the petrol cost in India."

The view that petrol here will still be cheaper than back home was held by 10 per cent of the respondents, while another 4 per cent said pump operators were running a business and not a charity and it is their right to ask for market prices.

However, only 2 per cent believed that international price parity is reasonable, pointing out that the international price includes a significant percentage of tax, which should not be included in the local prices.

As asked by John: "The way to bring prices to international standards is by taxing petrol. In France, for example, the price per litre is made up of 73 per cent Tipp tax plus 19.6 per cent VAT. What is the ratio here?" 

Poll: Petrol price is to go up further. Are you braced?
Yes, it is still cheaper than back home - 10%
Yes, it’s a business like any other - 4%
Yes, international parity is reasonable - 2%
No, it will further fuel inflation - 25%
No, it will put a strain on my budget - 60%

 

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