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FINANCIAL NEWS
Gulf states consider law to stop fuel smuggling
15 Jan 2015
(MENAFN) The United Arab Emirates Energy Ministry said that the Gulf countries, led by both the United Arab Emirates and Saudi Arabia, are formulating a new law to stop fuel smuggling, The Peninsula Qatar reported.
Smuggling of fuel, including diesel, gasoline and other products, is frequent across the borders of some Gulf Arab states, where different levels of fuel subsidies create price gaps which are then exploited by the smugglers.
“The ministry is working on a law to prevent smuggling of diesel or other products. Saudi is also working on a similar law and some neighboring countries also where it is subsidized,” The UAE’s Energy Minister said.
The Ministry said that they are considering ways to eliminate smuggling, which one way suggested is for governments to adjust the billions of dollars of subsidies which they pay make the prices of fuel similar to each other.
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