UAE May Stall Fuel Price Hike Amid Unrest

The United Arab Emirates may roll back plans to hike gasoline prices to avoid flaring anger in the Gulf state amid the unrest sweeping through the region, sources told Reuters.

The UAE, the world's third largest exporter of crude oil, had begun phasing out last year its gasoline subsidies, which cost the state hundreds millions of dollars a year as Dubai's debt crisis also weighed on finances of wealthy Abu Dhabi.

"We were expecting a price hike this year but with all the protests going on in the region, I think the government will hold off until things are more stable," said an energy industry source.

Revolts against autocratic regimes and economic hardships in the Arab world ousted entrenched leaders in Egypt and Tunisia and shook nearby Bahrain, Oman and Yemen. Oil-producing Libya has plunged into a bloody anti-government uprising.

UAE gasoline prices have risen 26 percent to 1.7 dirhams ($0.46) per liter since last April, when the government introduced the first of two price hikes imposed so far, still well below market prices.

All petrol stations in the UAE must respect state-controlled prices.

"The only ones who will be complaining about the price hikes are the distribution companies and retailers but they are government backed anyway so it's not a major issue," said an official from the state-run Abu Dhabi National Oil Company (ADNOC).

Governments across the world's largest oil exporting region have long subsidized prices at the pump in an effort to cut living costs for residents and encourage economic growth regardless of fluctuations on the global energy markets.

"It is just not the time for any price hikes, this is a time when the government wants to calm people down, not irritate them," the industry source added.

• Omsk Refinery Produces over 1 Million Tons of Euro 4 and Euro 5 Gasoline in 1Q 2013 
• Iran to Launch World’s Largest Gasoline Unit 
• Angarsk Company launches Gasoline Blending Unit 
• Shazand Oil Refinery to Raise Gasoline Production by 8 ml/d 
• Iraq finalizes 2013 Gasoil Deal with Vitol & BP 
• Imam Petrochemical Plant Observing Euro-5 Standards 
• Lavan Oil Refinery Boosting Gasoline Production 
• Iran to Inaugurate World’s Largest Gasoline Refinery in 2-3 Weeks 
• Isfahan Oil Refinery’s Gasoline Production Capacity Rising 
• Jordan Hikes Gasoline, Power Prices to Ease Deficit 

• GulfOilandGas - Regional E-Market Place serving the Middle East and North Africa 
• EMARAT MISR - a new palyer in the marketing side 
• Conoco Expanding Asset Sales 
• Rutter Secures Order for Oil Spill Response Radar