ABU DHABI: While understanding that the impact on removing subsidies on domestic electricity would not be that great to the consumer, the United Arab Emirates is looking at removing subsidies on both electricity and on gas sold to companies generating power.
“Consumers need to pay the real price. They already do so for petrol and diesel, and electricity is still to come, and we will look at the subsidised sale of gas to power providers,” said Energy Minister Suhail Al Mazroui, speaking at the World Economic Forum in Davos.
According to report published in Gulf News, the process of subsidy reduction is part of a much wider strategy to make the government budget independent of oil revenues. “Since its inception the UAE has sought diversification from oil, and even though oil revenues will always be there, we need a vibrant economy independent of oil,” Al Mazroui said.
