17:06 GMT +306 December 2016
Live
    Dubai by night

    Petrol in UAE Cheaper Than Drinking Water

    © Flickr/ Crazy Diamond
    Business
    Get short URL
    52056132

    Following the collapse of oil prices, petrol in the United Arab Emirates has become cheaper than some basic commodities, including drinking water.

    Motor-fuel prices have dropped to an unprecedented level, according to the local newspaper The National. One liter of Special gasoline currently costs 40 cents. Meanwhile, you can buy 1,5 litres of Evian potable water for $2.15, one liter of Pepsi — for 80 cents. Six eggs cost $1.06.

    "While it's always nice to save money in Dubai, it's scary to think of the effects of low oil prices and what's happing to the economy as a result of it. It's a bit scary for Dubai residents," Dubai resident Yasmine Saade told the newspaper.

    Environmental specialist Hassan Galadari shared his concern that the downslide of petrol prices will hinder the transfer to more cost-effective cars which are less harmful for the environment.

    In the last year since January 2015, Brent oil became 30 percent cheaper — the prices dropping from $52 to $35 dollars for a barrel. The reasons behind this major decline include the more moderate growth of China's economy (China is one of the world's primary consumers of hydrocarbon), OPEC's policy of increasing oil output, and the lifting of anti-Iran sanctions.  

    UAE Energy Minister Suhail Al Mazrouei believes the global oversupply of crude will decline this year, even after Iran adds an expected 500,000 barrels per day in oil output.

    "Iran's possible production increase of 500,000 barrels per day this year won't be enough to meet the expected demand," he said. "It's difficult to see where the new oil supply is coming from this year to fill the expected annual demand increase of at least 1.3 million barrels a day."

    Related:

    Oil Production Cuts Unlikely to Reverse Plunging Prices
    Dirty Oil Business: Turkey’s Government Has Been ‘Pushed Into a Corner’
    Iran’s Oil Deal With French Firm Total Not Finalized – Source
    Tags:
    petrol, Oil, price drop, UAE
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik
    • Сomment

    All comments

    • siberianhusky
      Keep on dreaming in Dubai you might begin to believe it.
    • cast235
      FUTURE SHOCK!!! If prices persists, those foreign corporations will lose their foothold. The oil companies extracting the oil will go belly up. And so will many corporations that count on earnings from that same oil industry.
      UAE itself will begin hugging loans. Till debt do us apart.
      Then IMF etc will lose billions if not trillions.
      Think is just there?
      There was a protest at MOSCOW, over people that cannot afford their home loans in foreign currency. Russia's fault?
      NO..
      This are west bankers. They did exactly that to west.
      Banks were giving loans out, to people that may not was able to repay.
      With a lot of fine print. Evictions were rampant. Lehman Brothers went belly up and a domino effect took place. Now they want Russian assets. Tangible one's to take over Russia.
      They may help, IF they go with west interests.
      Kremlin should play it's cards. FAST.. Just buy their loans OFF.
      And give them a low interest that they can pay. And PUNISH the west banksters for doing that and pass laws so they cannot do it..One could be all assets will be taken and manage by Russia itself. Like a warehouse, and then later could be auctioned. They still get their cash or the salvage cash. BUT not the asset.
    Show new comments (0)

    Top stories