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Oil pinch hurt growing in the UAE as Uber, Sharjah Taxi take cues
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.
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).
The UAE’s long-awaited passenger rail network has taken another major step forward after Etihad Rail confirmed the completion of its first passenger station in Fujairah ahead of operations launching later this year.
Located in the Madinat Al Hilal area, the new station spans more than 51,900 square metres and is expected to become a key transport hub linking Fujairah with Dubai and Abu Dhabi.
A new way to travel across the UAE
Officials say the launch of passenger rail services could significantly reshape travel between emirates, offering faster and more comfortable journeys while reducing pressure on roads.
Travel at 200km/h
- Travel time between Fujairah and Abu Dhabi will take around 105 minutes
- Trains will reach speeds of up to 200km/h
- Each train will accommodate up to 400 passengers
The first operational phase is expected to launch simultaneously across routes connecting Abu Dhabi, Dubai and Fujairah.
Strategically located near key landmarks
The new station sits close to several major destinations in Fujairah, including:
- Fujairah International Airport — approximately 12 minutes away
- Umbrella Beach Corniche — around six minutes away
- Sakamkam Fort — roughly five minutes away
Officials believe the railway connection will help boost tourism, investment and economic activity across the emirate.
VIP lounges, Wi-Fi and dining onboard
The passenger experience is also expected to feel far more modern than traditional regional rail travel.
Station and trains will include:
- Retail areas
- VIP lounges
- High-speed Wi-Fi
- Dining carriages
- Automated payment machines
- Passenger service offices
- Modern waiting areas and digital signage
Built with strong local contribution
Etihad Rail also revealed that around 70 per cent of materials used across the national railway network were sourced locally through 97 UAE suppliers, highlighting the project’s broader economic impact.
While official schedules and ticketing details are still expected to be announced closer to the launch date, the completion of Fujairah Passenger Station is a major step towards rail travel in the UAE.
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First look at Etihad Rail’s first passenger station with VIP lounges and high-speed Wi-Fi
