ABU DHABI // The Ministry of Energy is looking at regulating petrol prices by taking away the rights of local oil companies to set them.
The Minister of Energy, Suhail Al Mazrouei, told the FNC on Tuesday that the ministry was preparing a study of ways to make the cost at pumps better reflect low global oil prices.
He said that one of the proposals was to establish a committee to set petrol prices.
“It is important that the ministry, and not companies, set prices,” Mr Al Mazrouei said, adding that ministry discussions with oil firms on ways to lower prices had not reached a solution.
He said the study would soon be presented to the Cabinet and “will be to Emiratis’ satisfaction. We need to look at pricing overall. We will see how we can allow consumers to benefit from lower costs of oil.”
The minister did not specify whether lower prices would benefit all residents or Emiratis only, as had been proposed in earlier FNC meetings.
Three years ago the FNC raised the issue of UAE petrol prices, which are higher than the rest of the GCC, asking the Government to bring them into line with the region. Mr Al Mazrouei was answering a question from Hamad Al Rahoomi on why they had not fallen along with oil prices.
Mr Al Rahoomi backed the minister’s proposal: “I don’t think it’s fair that when prices go up they raise their prices, and when it goes down, they say, ‘give me time to compensate for my previous losses’.”
Mr Al Mazrouei said UAE petrol retailers had suffered losses over the course of last year.
“Looking at 2014, we searched with UAE companies and look-ed at profits and losses for that year. We found that all suffered from losses overall,” he said.
They lost a total of Dh38 billion in the past 10 years, with Adnoc alone losing Dh6.4bn in petrol sales in 2014, he said.
US petrol prices are rapidly falling to UAE levels. Ninety-five octane sells here for Dh1.72 a litre, compared with Dh1.92 in the US.
But Mr Al Mazrouei said the UAE could not be compared to other countries as its petrol was heavily subsidised, whereas in other nations prices were linked to international oil markets.
The price of crude has dropped 60 per cent since June because of rising energy production in North America and falling demand from emerging markets.
osalem@thenational.ae
