The recent interest rate hikes have also resulted in bringing down further inflation which had spiked earlier this year.
The UAE on Friday substantially reduced retail fuel prices for the month of January 2023 which will boost disposable income for residents, improve the purchasing power of residents and bring down costs for logistics and transport companies.
Starting January 1, Super 98 will cost Dh0.52 or 15.7 per cent less than December at Dh2.78 per litre. Similarly, Super 95 will cost Dh2.67 per litre in the first month of the new year, down by 16 per cent or Dh0.51. Whereas, E-Plus will cost 16.7 per cent less at Dh2.59 per litre.
The cut in rates brings petrol prices to the lowest level in 11 months. The January 2023 rates for 95-octane are cheaper by over 43 per cent in the UAE than the global average.
Reduction in fuel prices lowers transportation costs which in turn brings down prices of consumer goods. In addition, the recent interest rate hikes have also resulted in bringing down further inflation which had spiked earlier this year after the Russia-Ukraine crisis and surge in crude oil prices.
Inflation in the UAE is already among the lowest in the world and is likely to fall further in 2023, Abdulla bin Touq Al Marri, Ministry of Economy, said in early December.
“We have seen the last six months of global turbulence. But it’s the UAE’s agility that puts it on the global map. Inflation in the first nine months was 5.5 per cent, one of the lowest in the world. We are looking at inflation going down further next year,”
the minister said.
News Source: Khaleej Times