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So how much more expensive will petrol get? Or not.

So how much more expensive will petrol get? Or not.

Old Jul 22nd 2015, 9:23 am
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Default So how much more expensive will petrol get? Or not.

Petrol price in UAE to be deregulated from August 1
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Old Jul 22nd 2015, 9:39 am
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by Bungdit Din View Post
I remember reading somewhere a few months ago that it was estimated market equilibrium would be reached at approx twice the price of today.
Double current price would still be less than half the global median price according to World Bank.

Pump price for gasoline (US$ per liter) | Data | Table

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Old Jul 22nd 2015, 11:00 am
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by norsk View Post
I remember reading somewhere a few months ago that it was estimated market equilibrium would be reached at approx twice the price of today.
Double current price would still be less than half the global median price according to World Bank.

Pump price for gasoline (US$ per liter) | Data | Table
but I use so much of it!
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Old Jul 22nd 2015, 5:14 pm
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Default Re: So how much more expensive will petrol get? Or not.

I think if it goes to what they say...in line with global average of around 1.10$ then it will be close to 4 AED a litre...so over double what is today. Be interesting to see how close to this is does go.
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Old Jul 22nd 2015, 5:58 pm
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by Millhouse View Post
but I use so much of it!
Well it is time you helped the environment and cut down.
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Old Jul 22nd 2015, 6:06 pm
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by winston_1 View Post
Well it is time you helped the environment and cut down.
That applies to everyone in the world not just us driving V8's here in the Middle East!
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Old Jul 23rd 2015, 8:31 am
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Default Re: So how much more expensive will petrol get? Or not.

sign of desperation if you ask me
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Old Jul 23rd 2015, 8:39 am
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by Irishbeekeeper View Post
sign of desperation if you ask me
I think we can safely say it has very little to do with becoming more eco-friendly that's for certain. Oil prices are only going to head in one direction and steps must be taken to at least try to balance the books I suppose..
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Old Jul 23rd 2015, 4:49 pm
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Default Re: So how much more expensive will petrol get? Or not.

They have actually timed it perfectly. Remove the subsidies when the price is low and blame the markets when it starts to go up.

Iran is killing the oil market right now, so it may take a while to recover.
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Old Jul 30th 2015, 10:55 am
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by Irishbeekeeper View Post
sign of desperation if you ask me
Could not agree more. They are trying to find any means to get additional income, to plug the debts to which they up to the hilt in. That goes for both AD and Dubai.

I am just watching the sliding real estate markets in Dubai and waiting for that crash. Mark my words, you will see those high end 5 bed villas going for less than 100,000 DHS before or just after the Expo.
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Old Jul 31st 2015, 12:02 pm
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by Desert Shaikh View Post
before or just after the Expo.
Not sure about that low, but the UAE just cannot help itself, it just doesn't do stable.

This expo thing is typical Dubai, quite hilarious. They're selling it to the gullible punters like it's the olympics, worldcup and eurovision song contest all rolled into one, and the world will be looking at the UAE more than ever because of this expo.

Tell me honestly, can anyone tell you where the last 3 world expos were held? Or any of the last 3? So how much publicity did it get for any of those places then?

Having left the UAE a couple of years ago, it's quite remarkable how little the rest of the world notices or cares what goes on there. When you're there, you're made to believe it's the capital of the world. I've never been to anywhere so below average in so many respects that is so obsessed and convinced of its own magnificence.
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Old Jul 31st 2015, 12:25 pm
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Default Re: So how much more expensive will petrol get? Or not.

Originally Posted by captainflack View Post
I've never been to anywhere so below average in so many respects that is so obsessed and convinced of its own magnificence.
I think the Middle East as a whole fits that billing.
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Old Aug 2nd 2015, 5:50 am
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Default Re: So how much more expensive will petrol get? Or not.

Even following the last market crash, high end 5-bed villas were still going for a lot more than 100K. I don't think Meadows villas ever dropped below 200K.

While the market is overinflated, Dubai has built itself up as the premier city of the region, has a huge logistics sector and a growing financial sector and is the preferred location for regional HQs of multinationals. The population of affluent expats not in O&G or construction or real estate is pretty substantial and there's enough to keep rental prices at a fairly high level.

This is compounded by that as a city overwhelmingly dominated by transient expats of which the vast majority have no interest in buying property, there's always going to be a demand for rental properties to keep prices above a certain level. While there's lots of new inventory coming into the market, the population has also grown along with it.

I do think we're due for a correction in the rental market but my guess is around 20-25%. This fall will be really interesting (hopefully) as there's too many negative economic factors to sustain current rent levels, which seem to have only marginally declined this year so far. The huge decline in oil prices, retrenchment in O&G, major government budget cuts, sharp drop off in tourism from other oil rich countries and the increasingly expensive dollar all point to another recession. Word on the street (ok, in the bars) is that car sales this Ramadan were very disappointing, and that is a big indicator of where we're heading. Yet rents are still too high.

I'm guessing that landlords, fools they are, are desperately keeping advertised rents high right now because they know August is a popular month for new expats moving to the UAE and they're hoping to nab someone new in the country and who needs to rent immediately. When that new market dries up in October we could see some big falls. Hopefully!

On the other hand, if the Iranian economy is opened up to the rest of the world, Dubai could be a prime beneficiary as Iranian dollars flow out of the country, hungrily looking for somewhere to invest



Originally Posted by Desert Shaikh View Post
Could not agree more. They are trying to find any means to get additional income, to plug the debts to which they up to the hilt in. That goes for both AD and Dubai.

I am just watching the sliding real estate markets in Dubai and waiting for that crash. Mark my words, you will see those high end 5 bed villas going for less than 100,000 DHS before or just after the Expo.
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Old Aug 2nd 2015, 6:37 am
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Default Re: So how much more expensive will petrol get? Or not.

I remember when we lived and worked in Saudi. You got as much fuel as the vehicle could take and it was a fixed fee of 10 rials and that included the car wash.
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Old Aug 2nd 2015, 7:59 am
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Default Re: So how much more expensive will petrol get? Or not.

it would be interesting to see how far it'll go though... fuel needs to double to get roughly inline with global rates - I just don't see them pushing that hard.

But, no riots on the street yet - although I'm expecting the price of everything to go up 25% now too.
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