Khaleej times:
Government to introduce liberal oil price regime
By a staff reporter
4 September 2005
ABU DHABI — The government is considering introducing a liberal oil prices regime within the next six months. According to local newspaper Al Khaleej report, oil-marketing companies approached the government, demanding 100 per cent increase in the oil prices in one shot, though the government approved only a 50 per cent rise in two phases.
Last week, a 31.5 per cent hike was announced. The remaining increase would be made in the second phase, beginning early next year.
The objective behind the increase in oil prices is to bail out the loss-incurring oil marketing companies, who have long been complaining on the price-widening differential of their cost of purchase and the retail price.
04 September, 2005
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3 comments:
Increase in oil prices will have a domino effect on foodstuff prices too. Taxi fares will rise and I'm sure bus fares as well. Rents have already risen and continue to rise.
Everything is becoming expensive, but what about the minimum wage? Government salaries have already been increased by 25%. What about those in the private sector. For example, is a construction worker still supposed to work for Dhs. 600 a month, while expenses make it harder for him to even make it through the month?
What is the by-product? Rise in crime rate.
I wonder when the government is going to address these very important issues. Perhaps when the situation is out of control, as is mostly the case. Then all decisions are made in a hurry!
Fuel prices go up and down and so do rents. Fair enough. How does the government expect individuals to plan and budget properly when increases of 30%, 50% and more appear overnight?
This whole situation smacks of appalling planning and utter incompetence.
It 'smacks' of utter greed dude!
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