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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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Dubai’s traffic woes: Motorists lose 460 hours annually to road jams

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Dubai’s vehicle growth rate has soared beyond 8 per cent, far exceeding the global average of 2 per cent, according to Suhail Al Mazrouei, UAE’s Minister of Energy and Infrastructure. Calling this surge “abnormal,” the minister stressed the urgent need for new policies and regulations to manage vehicle ownership and traffic congestion.

Every day, about one million people from other emirates travel to Dubai for work, causing heavy traffic on major highways, including the 12-lane Sheikh Zayed Road. Studies show that four out of five employees drive alone, adding to the congestion.

With so many cars on the road, traffic jams have become a daily struggle, making road travel longer and more stressful for everyone. Authorities are looking for solutions to improve public transport and reduce the number of solo drivers to help ease the burden on roads.

To tackle the issue, the Ministry has requested that it be included in the UAE Government’s Annual Meetings for better coordination with local authorities. A special task force, including representatives from the Ministry of Interior and local governments, is already studying the problem, with several proposals submitted to the Cabinet.

Traffic Crisis Worsening Day by Day

Al Hammadi highlighted alarming statistics

  • The total vehicle increase across Dubai, Sharjah, Ajman, and Umm Al Quwain is 23%
  • 1.2 million cars enter Dubai daily, up from 850,000 just 18 months ago
  • Dubai issues 4,000 new driver’s licenses daily
  • Employees commuting between Dubai and Sharjah spend about 460 hours a year in traffic, equivalent to 60 working days

Proposed Solutions to Ease Traffic Congestion

The Ministry has outlined key measures to address the rising traffic crisis:

  • Expanding road corridors between Dubai and other emirates
  • Developing new highways to improve connectivity
  • Enhancing public transportation with new and improved transit options
  • Integrating mass transit systems to encourage more people to use public transport

Concerns Over Delayed Implementation

During a Federal National Council (FNC) session, Adnan Al Hammadi, an FNC member, raised concerns about increasing congestion between Dubai and Sharjah. He pointed out that over a year ago, the minister had assured him that traffic studies were complete and solutions would be implemented in 2024. However, with congestion worsening, Al Hammadi pressed for a clear update on the progress.

In response, Al Mazrouei confirmed that development work on key federal roads started in 2024 and is ongoing. However, Al Hammadi expressed frustration, stating that the same update was given over a year ago. “When will we see these solutions in real life?” he asked.

(Source: KT, independent.co)

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Dubai’s RTA conducts major inspection drive to weed out unauthorised operators

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Dubai’s Roads and Transport Authority (RTA) has turned up the heat on car dealerships across the emirate, launching a major inspection campaign to ensure strict compliance with transaction regulations and archiving standards.

The crackdown, which targeted 14 dealerships, aimed to weed out unauthorised operators, review service quality, and monitor potential violations. Inspectors left no stone unturned — checking everything from new vehicle registrations and ownership transfers to number plate changes and traffic file procedures.

RTA officials emphasised that strong governance and oversight are key to maintaining public trust and service efficiency. “This initiative ensures that all dealerships operate within Dubai’s legal framework, providing customers with a seamless and transparent experience,” said an RTA spokesperson.

With Dubai’s ever-growing car market, authorities are making it clear: Dealerships must follow the rule or face the consequences.

(Source: rta.ae)

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New RTA permit makes it easier to rent a luxury car with chauffeur in Dubai 

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Dubai’s Roads and Transport Authority (RTA) has introduced the ‘Takamul Permit’ — a groundbreaking new initiative that is aimed at integrating luxury car services with the car rental industry. Whether you’re a resident, tourist, or businessman, Dubai is making it easier than ever to experience its luxurious lifestyle.

What’s the Big Deal?
With this permit, limousine transport companies and car rental firms can team up like never before, offering customers the chance to rent high-end rides with chauffeurs for up to one month. That means effortless access to elite, chauffeur-driven experiences—all under RTA’s top-tier regulations.

The Rules of the Road
Jamal Al Sadah, Director of Commercial Transport Activities at RTA, revealed that the initiative ensures smooth operations and compliance. Companies must follow strict regulations, including registering rental contracts and listing drivers on the Transport Activities Rental System (TARS).

Why It Matters?
Dubai is already known for its luxury offerings, and this move solidifies its position in premium transport solutions. Whether you’re heading to a business meeting, a five-star hotel, or a VIP event, Takamul Permit has got you covered.

(Source: Wam)

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