Wednesday, July 29, 2015

Fuel price increase is least of UAE concerns




For the last week or so, the car-driving community of the UAE has been in hysterics!

The UAE government announced that they would be removing subsidies on fuel prices starting August 1 and threatened to make the price comparable to the international market. Hearing the news, the public started to freak out and a sudden push was made for the re-introduction of the hoverboard from Back to the Future II.

Electric car, anyone? But in the oil-rich land of the Middle East, wouldn't that be like shooting yourself in the foot? Before you decide to mount a camel and hit the road, read this analysis piece from The National that explains why the price hike could have long-term benefits.

But let be honest for a second: for the last two and half years while living in Abu Dhabi, I have not even paid attention to the cost of filling up my tank. Because every time I pull up to the petrol station, I got Taylor Swift blasting through the speakers and can't be bothered with looking up prices near the pump. In the States, they usually post the ever-changing prices on huge boards so gas stations can stay competitive with one another. Not here. There are three major gas retailers in the UAE and -- surprise! -- they are all owned by the government.




Plus, not worrying about gas prices was one of the good things about living here. We're all just driving around, through the desert, but there never were any worries because the gas was always SUPER CHEAP. For example, I drive a 2013 Kia Sportage with a 70-litre gas tank and it costs about Dh75 to fill up my tank and that translates to $20.43. Not too shabby, huh?

Plus, when you pull up to a gas station in the UAE (and it doesn't matter if Taylor Swift is playing), they have gas attendants who fill you up so you can stay nice and cool in your air-conditioned car. They will even wipe down your windows, too.

Spoiler alert: we are becoming lazy.

Then when it's time to pay, the gas attendants will be happy to swipe your credit card. But because they do not have the mobile credit card machines, they ask if you have a pin number and then you tell it to them so they can complete the transaction while you remain inside your air-conditioned car. Giving your pin number to a random gas attendant? Sounds about right.

Spoiler alert: we are becoming VERY lazy.

Oh look, they just built a drive-thru McDonalds next to the gas station. Well, it's only 9am but I have the sudden hankering for a McArabia. It's like a Big Mac, but even better. Good thing this particular McDonald's is open 24 hours a day.

Spoiler alert: we are becoming so damn lazy and we will all die from DIABETES.




From another article this week in The National:

Minister of Energy Suhail Al Mazrouei says the new petrol prices announced on Tuesday are still relatively low, given the lack of tax.

From Saturday, the price for a litre of Special 95 will increase from Dh1.72 to Dh2.14 – a rise of 23.6 per cent. Super 98 has been set at Dh2.25 and E Plus at Dh2.07. But diesel is now Dh2.05, a 29 per cent drop from its previous price of Dh2.90.

“I don’t think people will give up their cars,” said Mr Al Mazrouei. “There is a segment of people with very low incomes making Dh1,000 or Dh1,500 salaries a month. This is not healthy. They should use the services [public transport] that the Government is providing them with."


Not healthy? NOT HEALTHY?!! At least these people are not consuming fast food at an alarming rate and during all hours of the night. But forcing them onto the public transit buses sounds like a viable solution to this fuel price increase.

Spoiler alert: I ate McDonald's for lunch today. It cost a little less than a tank of gas.

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