29 Mar 2024
Sunday 31 January 2016 - 10:26
Story Code : 199337

Petrol in UAE cheaper than drinking water

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 toan unprecedented level, according tothe local newspaper The National. One liter ofSpecial gasoline currently costs 40 cents. Meanwhile, you can buy 1,5 litres ofEvian potable water for $2.15, one liter ofPepsi for80 cents. Six eggs cost $1.06.
"While it's always nice tosave money inDubai, it's scary tothink ofthe effects oflow oil prices and what's happing tothe economy asa result ofit. It's a bit scary forDubai residents," Dubai resident Yasmine Saade told the newspaper.


Environmental specialist Hassan Galadari shared his concern that the downslide ofpetrol prices will hinder the transfer tomore cost-effective cars which are less harmful forthe environment.


In the last year sinceJanuary 2015, Brent oil became 30 percent cheaper the prices dropping from $52 to $35 dollars fora barrel. The reasons behindthis major decline include the more moderate growth ofChina's economy (China is one ofthe world's primary consumers ofhydrocarbon), OPEC's policy ofincreasing oil output, and the lifting ofanti-Iran sanctions.

UAE Energy Minister Suhail Al Mazrouei believes the global oversupply ofcrude will decline this year, even afterIran adds an expected 500,000 barrels per day inoil output.
"Iran's possible production increase of500,000 barrels per day this year won't be enough tomeet the expected demand," he said. "It's difficult tosee where the new oil supply is coming fromthis year tofill the expected annual demand increase ofat least 1.3 million barrels a day."



By Sputnik
https://theiranproject.com/vdcbf9b8zrhb9fp.4eur.html
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