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Learning to pay more for gasoline

Learning to pay more for gasoline

The new gasoline prices are displayed at a gas pump recently in the UAE. (Photo courtesy of The National)

This column appeared in Arab News on Aug. 02, 2015:

By Rasheed Abou-Alsamh

The move by the United Arab Emirates to raise the price of gasoline at the pump by 24 percent from Aug. 1 was a brave one and is a sign of the times. Once again the UAE is being a trailblazer among the Gulf countries, realizing that despite our vast reserves of oil and our low production costs, compared to the US and other countries, our oil will not last forever and we can get much more for it by exporting it rather than selling it at heavily subsidized prices at home.
The initial reaction of Gulf citizens at this news most probably is one of shock and outrage. After all, most of us have grown up with dirt cheap gasoline as our birthright, costing only a few halalas a liter. Having to pay 1.72 dirhams per liter, let alone the new price of 2.14 dirhams per liter, is outrageous to your average Gulf citizen.
But with the drop in the world price of oil from over $100 a barrel over a year ago to the current average of $52 a barrel of today, our rulers have begun to realize that despite our large foreign currency reserves that we accumulated during the years of high oil prices, which are now helping cushion our budget shortcomings, we must stop wasting so much energy domestically both in our cars and in our homes.
Most citizens think that cheap gasoline and electricity have no cost to the government or to society, but they are wrong.
Today, Saudi Arabia has to use one-third of its oil production just to meet electricity demand at home, oil which could have been exported and sold to earn much more income for our government.
And our electricity consumption just keeps on growing. The main reason of course is because of our high temperatures, especially in the summer, where everything has to be air-conditioned 24-hours a day, just to make life bearable. But then our cheap, subsidized power rates encourage people to waste electricity by leaving lights on in their homes all day long, even when they are not at home, and to leave lights on in rooms, when they are at home, in rooms that they are not using.
Some families even leave their air-conditioners running constantly when they go on vacation, even though no one is left at home during that period.
Our cheap gasoline price in the Kingdom, currently 57 halalas a liter (16 US cents) leaves us with the third cheapest gasoline in the world. Only Libya and Venezuela have cheaper gasoline than ours. But is that really something to be proud of? I don’t think so as it just encourages waste. Have you seen how many of our young men drive aimlessly around the streets of our cities on the weekends and during holidays?
If gasoline were SR1.50 a liter, I doubt we would see so many of them roaming the streets as before, which would be a big relief to the young women who get harassed by them.Saving our natural resources and using them wisely should be seen as a patriotic duty and the right thing to do for our nation’s future. Our beloved Prophet Muhammad (peace be upon him) encouraged us not to be wasteful and to help the less fortunate. Let us follow his advice and stop wasting our oil and electricity so that we can help ourselves and our future generations.

http://www.arabnews.com/columns/news/785271