ABU DHABI // Complaints in the UAE about expensive fuel have been countered in a recent study that says the country has among the most affordable petrol prices in the world.
Data compiled by Carmudi – an online marketplace for vehicles – examined the affordability of fuel prices in 18 markets around the world.
As oil prices have tumbled over the past 12 months, motorists have felt different effects at the pump. In some countries petrol prices have decreased, while in others they have risen.
According to the data, the average price per litre of petrol in the UAE in April, May and June was US$0.47, or about Dh1.72.
When compared with the country’s average daily income of $170, a litre of petrol represents a mere 0.28 per cent of a day’s wages – making the UAE among the top three most affordable nations in the study.
On the other side of the spectrum, those filling their tanks in the Congo are forced to pay $1.51 for a litre, which represents more than 112 per cent of a resident’s total earnings for one day.
In the study, fuel prices in the Middle East were described as “incredibly low”.
Among all countries, fuel is most affordable in Qatar, where the average price per litre is $0.26 and residents earn an average $382.60 per day.
As a result, a litre of petrol costs Qatari residents only 0.06 per cent of their daily salary.
In Saudi Arabia, the world’s largest oil producer behind the United States, petrol costs 15 cents a litre – only 0.1 per cent of the kingdom’s average daily income.
Nigeria, the biggest oil producer in Africa, has the most affordable petrol on the continent at $0.46 per litre, or 5.6 per cent of the national average daily income.
After fuel subsidies were cut earlier this year, Indonesians are now paying about 30 per cent of their daily earnings per litre of fuel.
The data was compiled using numbers from various national statistic bureaux, charitable organisations and research organisations.
Fuel prices were recorded during the second quarter of this year for all nations except Myanmar, which relied on last year’s numbers. Most motorists in the UAE said they were satisfied with the price of fuel.
“It’s very cheap for me, coming from the UK,” said Abu Dhabi resident Daniel Whiffin, who bought a 2015 Chevrolet Camaro SS sports car this year.
“The main reason I bought this car is because there is no way I could afford the fuel back in the UK.”
Hesham Tolba, who is originally from Egypt, said there were two things to take into account – prices are inexpensive when compared with overseas markets, yet costlier when compared with other Gulf nations.
“The UAE is a major crude oil exporting country, so the price of the petroleum derivatives should be low, like Saudi Arabia, or at least Kuwait,” he said.
But despite the price differences among neighbours, Mr Tolba said higher costs were in line with the UAE’s standard of living, and petrol should not be further subsidised.
“It is not fair to offer a lower fuel price, and increase government expenditures,” he said.
In mid-June, The National reported that the Ministry of Energy was conducting a review of its petrol subsidy policy after questions were raised as to why retail prices were not reflecting a substantial drop in oil prices.
The energy minister, Suhail Al Mazrouei, said the Government would take a closer look at fuel subsidies against the backdrop of movements in oil markets, before reporting to the Cabinet.
This month, the International Energy Agency said global demand for petrol was growing because of lower prices, combined with economic growth.
Avinash Bhojwani, a trader at SuGandh Commodities in Dubai, said the price of crude has been relatively stable, thus keeping petrol prices in check.
“At the moment, it’s quite flat,” he said. “For the past two months, it’s moving in a range from $55 to $62 for a barrel of crude.”
ESamoglou@thenational.ae