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Oil pinch hurt growing in the UAE as Uber, Sharjah Taxi take cues

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Kumar Shyam

The pinch on the pockets of the UAE residents is starting to hurt badly by the day with rising oil prices and its knockon effects.

As soon as the petrol and diesel prices went up by at least 50 fils for the month of July, ride-hailing company Uber has followed suit.

The company sent out an email on Friday to inform about the fare hike. Uber would charge as much as 11 per cent extra for some trips, the American company added.

The hike is Uber’s second this year in the UAE, after a hike in March but the UAE’s market-linked price for the black gold has continued unabated. The country opted for a dynamic pricing with global trends in 2015. But Russia’s attack on Ukraine has messed all economies around the world.

Yet, petrol in UAE is three times more expensive than in Kuwait and almost double the average cost per litre in the six-member Gulf Cooperation Council, according to a Bloomberg report.

Dynamic pricing

Uber is not alone with Sharjah Taxi also deciding to base their fares with the rise or fall of fuel prices with this month.

The Sharjah Roads and Transport Authority (SRTA) said the meter flag down rate will be increased or decreased every month in direct co-relation with the prices. Petrol prices in the UAE have jumped over 56 per cent since January 2022.

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Also read: UAE ranks first regionally and twelfth globally in growth potential
UAE petrol price to get costlier by 50 fils in July 2022
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Early last month, Suhail Al Mazrouei, Minister of Energy and Infrastructure, had admitted that prices could go higher as Chinese demand is likely to recover significantly while efforts by Opec+ to raise production were not yielding results fast enough.

The latest data showed Opec+ was running 2.6 million barrels a day short of its production target, Mr Al Mazrouei said at the Middle East and North Africa-Europe Future Energy Dialogue in Jordan.

He expects China, the world’s biggest importer and second largest economy, which has been easing its coronavirus lockdowns, to “come with more consumption”.

“With the pace of consumption we have, we are nowhere near the peak because China is not back yet,” Mr Al Mazrouei said. “The situation is not very encouraging when it comes to the quantities that we can bring. We’re lagging by almost 2.6 million barrels a day and that’s a lot.”

 

Dubai most expensive city in the Gulf

Meanwhile, Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.

Dubai-expensive The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.

The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).

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Sharjah-Dubai commuters face new diversion as Al Taawun Street closes

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Motorists travelling between Sharjah and Dubai will face new traffic diversions from Saturday, June 13, as the Sharjah Roads and Transport Authority (SRTA) begins a temporary partial closure of Al Taawun Street.

The closure is part of ongoing construction works for the Al Taawun Tunnel Development Project, which aims to improve traffic flow and enhance the efficiency of Sharjah’s road network.

Under the revised traffic plan, vehicles heading towards Dubai and Al Nahda Bridge will be diverted via Al Corniche Street.

Meanwhile, motorists travelling from Al Nahda Bridge towards Sharjah will be redirected to the newly developed section of Al Taawun Street.

SRTA said the temporary arrangements are necessary to facilitate works at the existing Al Taawun roundabout and will come into effect from June 13.

The authority urged motorists to follow directional signs, use approved alternative routes and adhere to traffic safety instructions to help minimise delays during the construction period.

The Al Taawun Tunnel Development Project forms part of Sharjah’s wider infrastructure programme aimed at easing congestion and improving mobility across the emirate.

What changes from June 13?

Towards Dubai / Al Nahda Bridge

  • Use Al Corniche Street as the alternative route

From Al Nahda Bridge to Sharjah

  • Follow diversions to the newly developed Al Taawun Street


Start date: June 13

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Dubai road tragedy: Indian Consulate mourns victims as Dh1 million support announced

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The Indian Consulate in Dubai has expressed deep sorrow after a fatal road accident on Emirates Road claimed the lives of seven workers, including six Indian nationals and a Sri Lankan citizen, while leaving nine others injured.

Consular officials visited the injured in the hospital and said they are working closely with local authorities to provide assistance to victims and their families. “Our heartfelt condolences and prayers are with the grieving families during this difficult time,” the mission said in a statement.

Dh1 million relief announced for victims

Meanwhile, Dr Shamsheer Vayalil, Abu Dhabi-based entrepreneur, philanthropist, and Chairman and CEO of Burjeel Holdings, has announced a Dh1 million humanitarian recovery programme to support families affected by the fatal Emirates Road crash in Dubai.

The families of each of the seven deceased victims will receive Dh100,000, while Dh180,000 has been allocated to support the medical and recovery needs of the injured survivors.

The package also includes Dh70,000 to cover emergency travel and accommodation expenses for family members and Dh50,000 dedicated to supporting the education of children from the affected families.

What caused the crash?

According to Dubai Police, preliminary investigations indicate the truck had come to a sudden stop on Emirates Road following a technical malfunction.

Authorities said the minibus driver failed to maintain a safe distance and was unable to avoid the stranded vehicle, resulting in a high-impact rear-end collision.

The workers, all employed by a technical services company, were returning to their accommodation in Sharjah after completing work at a construction site in Dubai when the minibus they were travelling in collided with the truck in the middle of Emirates Road near the Dubai-Sharjah border.

Company sources said the minibus was carrying 17 people, including the driver. The seven workers who died were seated on the right side of the vehicle, which absorbed the full force of the impact.

Of the nine injured, five have since been discharged from the hospital, while four remain under medical care, including three Indian nationals and one Nepali worker.

Identification process underway

Authorities are continuing efforts to formally identify all victims, with company sources saying the process has been complicated by the severity of the injuries sustained in the crash.

Dubai Police warning

Following the accident, Dubai Police renewed warnings about the dangers of leaving broken-down vehicles in the middle of the road.

Motorists experiencing a breakdown are urged to:

  • Activate hazard warning lights immediately
  • Place a warning triangle at a safe distance
  • Move passengers away from the vehicle
  • Contact the police without delay

Police noted that stopping a vehicle on the roadway due to a breakdown, tyre failure, or fuel shortage is a traffic offence under UAE law, carrying a Dh1,000 fine and six black points.


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What El Nino means for the UAE: Hotter summer, more humidity and rainfall in coming months

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The UAE could experience hotter-than-normal and wetter-than-normal weather in the coming months as El Niño conditions strengthen across the tropical Pacific Ocean, according to the National Centre of Meteorology (NCM).

In its latest seasonal outlook, the NCM said there is a 98 per cent probability of El Nino conditions continuing between July and November 2026, with temperatures and rainfall across the UAE expected to range from near-average to above-average levels.

The forecast is based on conditions in the Nino 3.4 region of the tropical Pacific Ocean, a key climate indicator used by meteorologists worldwide. The latest sea surface temperature anomaly in the region is 0.5°C above normal, officially placing it within El Nino territory.

What is El Nino?

El Nino is a natural climate pattern caused by unusually warm ocean temperatures in the central and eastern Pacific. Although it occurs thousands of kilometres away, it can influence weather systems across the globe, including the UAE and other countries in the region.

Historically, El Nino events have been associated with higher temperatures, increased humidity, heavier rainfall in some regions, and more extreme weather patterns worldwide.

What could it mean for the UAE?

While the UAE is not among the regions most severely impacted by El Nino, forecasters say residents could see:

  • Higher-than-normal temperatures
  • Increased humidity levels
  • Greater chances of rainfall compared to seasonal averages
  • More variable weather patterns during the second half of the year

The NCM stressed that climate conditions are continuously monitored and forecasts will be updated monthly based on the latest international weather models and observations.

For now, residents should prepare for a potentially hotter and more humid summer as the climate phenomenon strengthens.

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