Emiratis' love of cheap gasoline has caused a fissure in the UAE establishment, setting a top government body, nervous of Arab Spring unrest, against national oil companies fighting to stem losses from producing underpriced
fuel for the home market.
Two years ago the United Arab Emirates considered phasing out generous subsidies that mean both citizens and the larger immigrant population only pay $0.47 for a liter of gasoline. But thoughts of raising fuel prices have been swept away by the Arab Spring that has put pressure on regimes to maintain social benefits, despite foreigners, who make up 89 percent of the population, being the biggest beneficiaries of subsidies that squeeze state coffers and fuel retailers.
This month members of the Federal National Council (FNC), which has no legislative powers, unanimously approved plans to cut gasoline prices for everyone, after complaints that citizens pay too much to fill up.
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