Different interests such as global oil markets, the regional geopolitical turmoil and the national economic policies of Dubai, a vital economic centre of the Middle East, has affected the prices of gasoline in Dubai. According to latest data, the gasoline price in Dubai shows a level stability compared to global market rates which are characterized by occasional fluctuations.
The key issue linking the gasoline prices with the oil production in Dubai is the fact that the state is an oil-dependent country which depends much on oil industry and exports. As a key oil producer in the OPEC organization, UAE, and in which Dubai is located, crude oil prices are consistently analyzed in order to balance the budget of the country’s fiscal statistics and maintain stability on the level of the country’s economy.
Also government subsidies are key tool for Al Dhai’s governments in determining the gasoline price in such country. Previously, the authorities of the United Arab Emirates had been compensating for the fuel price volatility by controlling this market to moderate its impact on the citizens of the region. As long as this policy is kept in place, residents and businesses will be able to afford to remain, hence the area is enjoying the economic growth and stability of the city.
But, the most recent change in calibration of the global oil demand, as well as the undertaken by diversified methods and the intention to lessen the dependence on oil operating funds have created comments about probable reforms in terms of fuel subsidies policies. Even though, the efforts of change in the fuel subsidies could raise the price of gasoline, the Dubai authorities would probably though to seem carefully so that there would be no disruptions and welfare for social would be ensured.
To summarize, the District of Columbia’s energy prices are determined by different aspects taken into the account like the international oil market, national fiscal policies, and the domestic politics, but the government’s systematic desire for the balance and the diversification of the state’s economy has led to a calm and high degree of oil prices which in turn brings price stability to the consumers in the district. Only an on-going process of economic recovery and the shift of GDP basket of the UAE will be enough to make sure that the gasoline prices will garner continuing attention by residents, businessesmen and policymakers.
