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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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Delivery services in UAE get boost with new support package

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Delivery and courier companies in the UAE are set to benefit from a new support package aimed at keeping services running smoothly and easing cost pressures, according to the Postal Sector Regulatory Committee.

The measures target firms in the courier, express and parcels (CEP) sector, which plays a key role in supporting e-commerce and everyday deliveries across the country.

Under the new plan, companies will be allowed to defer all regulatory fees for the first quarter of 2026 to the second quarter, along with a waiver of penalties linked to that period.

Officials say the move is designed to improve cash flow, reduce financial strain, and ensure uninterrupted delivery services, particularly at a time when operators are dealing with rising costs, shipment delays, and growing demand.

For residents and expats, the decision helps support the reliability of delivery services, from online shopping to essential shipments, at a time when demand continues to rise.

The CEP sector remains a backbone of the UAE’s e-commerce ecosystem, enabling faster and more flexible deliveries for businesses and consumers alike.

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New system to catch illegal parking in Dubai mall spaces

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Some of Dubai’s busiest malls are set to introduce AI-powered parking enforcement to address the misuse of spaces reserved for People of Determination (PoD).

Parkin Company has signed a multi-year agreement with Emaar Properties to roll out the system across Dubai Mall, Dubai Hills Mall and Dubai Marina Mall.

The move aims to protect dedicated parking bays, improve compliance, and ease congestion at high-traffic retail destinations frequently visited by residents and tourists.

How the tech works

The system uses Automatic Number Plate Recognition (ANPR) technology to monitor vehicles entering PoD-designated spaces.

Number plates are scanned and checked against valid permits. If no permit is found, the case is flagged for review at a central control centre. Drivers may face penalties, although a short grace period will allow time to move vehicles in case of mistakes.

On-ground inspections will continue alongside the new technology to ensure compliance with parking rules.

At Dubai Mall, parking systems are already integrated with Salik Company technology, including ticketless entry, number plate recognition, and automatic fee collection.

Stricter parking rules

For shoppers and mall visitors, the change means stricter enforcement of PoD parking rules to ensure these spaces remain available for those who genuinely need them.

It also signals a wider shift towards smart city solutions in Dubai, where AI is increasingly used to improve everyday services, from traffic flow to parking management, while enhancing accessibility and fairness.

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New toll gates in Abu Dhabi: Routes, costs and details

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Motorists in Abu Dhabi will see changes to their daily commute, as two new toll gates were activated today.

The move, announced by the Integrated Transport Centre, is part of ongoing efforts to reduce congestion and improve traffic flow across key routes in the emirate.

The new toll points will be located on Sheikh Maktoum bin Rashid Road in Ghantoot and on Karama Oasis Road at the entry and exit of Sheikh Zayed Road, areas identified through traffic studies as high-density corridors.

Dh4 per crossing

Drivers passing through these gates will be charged Dh4 per crossing, in line with existing toll rules. The system will operate 24/7, with current exemptions continuing for eligible groups, including senior citizens, People of Determination, low-income residents, and retired Emiratis.

To help motorists plan their journeys, authorities have also highlighted alternative routes. Drivers can divert via Sheikh Rashid bin Saeed Road or Al Khaleej Al Arabi Street, while those travelling through Ghantoot can use Sheikh Mohammed bin Rashid Road.

What it means for drivers

For residents and expats, the new toll gates may mean slightly higher commuting costs, but they are designed to improve travel times and reduce bottlenecks, especially during peak hours.

Officials say the rollout reflects Abu Dhabi’s broader strategy to support urban growth and manage increasing traffic volumes, with the impact of the new gates set to be reviewed regularly.

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