UAE oil minister says studying fuel subsidies, report ready soon

The United Arab Emirates’ oil ministry is studying the country’s system of fuel subsidies and a report will be submitted to the government soon, oil minister Suhail bin Mohammed al-Mazroui said on Monday.

Speaking at an industry conference, he said the government had requested the report after there were questions over why domestic fuel prices didn’t drop after the recent plunge of global oil prices.

Mazroui did not elaborate. Government subsidies keep domestic prices of fuels such as gasoline in the UAE at rock-bottom levels, among the lowest in the world; some officials have suggested cutting the subsidies to reduce pressure on the state budget.

But any subsidy cuts would be sensitive politically, and there has been no clear sign that the government is willing to take such a step.