UAE residents to expect cheaper grocery prices following the fuel price rollback

Following the government's cut in retail fuel prices for two consecutive months, grocery prices in the UAE are predicted to drop by almost 15%. Following the UAE fuel committee's announcement that prices would be reduced by 62 fils per liter for September, retail fuel prices in the UAE have fallen by more than 27% since their July highs. On Wednesday (August 31), the government lowered gasoline prices by more than 16% for September. Retailers said consumers would benefit from the trickle-down effect in the form of lower costs for transportation and logistics firms to transport goods within the country. "Transportation costs will come down for retailers and suppliers, and this will ultimately benefit consumers. When fuel prices had gone up in July, retail prices followed. So now fuel prices are coming down, grocery prices will also drop by around 15 percent," said Dr. Dhananjay Datar, chairman and managing director of Al Adil Trading. Datar also claimed that the decrease in fuel prices is a very positive indication of business and economic growth. The fall in fuel prices will also encourage domestic travel, boosting economic activity and accelerating economic growth. After the reduced fuel prices, freight rates are also expected to decline, according to Kamal Vachani, group director and partner of Al Maya Group. "Freight charges will come down with the reduction of retail fuel prices in the country and consumers will benefit from its trickledown effect. Reduction in retail fuel price was a very good decision to bring down the cost of living," he said. The decline in fuel prices will undoubtedly bring down the grocery bill, according to Century Financial Chief Investment Officer Vijay Valecha. BKM/ Expat Media
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