UAE says deregulation of fuel prices will protect resources

A decision by the UAE to link domestic fuel prices to global markets will help curb spiralling consumption and protect the country’s hydrocarbon resources, the UAE Energy Minister was quoted on Wednesday as saying.

Suhail Mohammed Al Mazroui also expected world crude prices to recover on the grounds the recent decline was only temporary.

“Liberalization of petrol prices in the UAE will boost its competitiveness in the global market,” the Minister told an energy conference in Abu Dhabi on Tuesday.

“This step will contribute to preserving the country’s resources as it will cut consumption…this will also curb carbon dioxide emissions in the transport sector.”

The Minister, whose remarks were carried by Al Bayan and other Arabic language papers, said the UAE is seeking to build “strong” relations with both oil producers and consumers to maintain stability in the global market.

He said demand for Opec’s crude is projected to surge by nearly 50 per cent by the year 2040 and that oil would remain a major source of energy in the long term despite sustained growth in demand for renewable energy.

Mazroui was also quoted as telling the conference at the Emirates Centre for Strategic Studies and Research that the recent oil price drop was temporary and that “it is not expected to continue for a long time.”