Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
Subsidies in Arab Gulf states that keep gasoline prices as low as 45 cents a gallon are proving difficult to dismantle amid growing regional turmoil.State-run Saudi Arabian Oil Co. warned in May that it would have "unacceptably low levels" of oil to sell in the next two decades if domestic power use kept rising at 8 percent annually.The region currently supplies 24 percent of the world's crude.Gulf governments are wary of alienating their own citizens, so changes to subsidies may take years, Robin Mills, a Dubai-based analyst at Manaar Energy Consulting & Project Management, said.Saudi Arabia's gasoline price of 45 cents a gallon (12 cents a liter) is the world's cheapest after Venezuela, data compiled by Bloomberg show.Brent crude's 18 percent slide since June 19 may compel Saudi Arabia and other oil producers to act soon.The U.A.E. last raised gasoline prices in 2010 and is likely to be the first of any Gulf states to boost them again, said Mills of Manaar Consulting.Failure to reduce energy demand in GCC states could curtail hydrocarbon exports from a region with 29 percent of the world's oil reserves and 23 percent of its gas.
FOLLOW THIS ARTICLE