There are only a handful of things in life that affect our day-to-day so profoundly, fuel prices are one of them.
Fuel prices go up; all other commodities become more expensive.
Fuel prices go down; everyone's car is out on the road.
I personally never thought I'd see the day when gasoline prices go so low that water and soda become more expensive than automotive fuel.
Well that day has come. In the United Arab Emirates, gasoline prices have dropped so much that one liter will only cost 40 US cents while a 1.5-liter bottle of French mineral water will set you back US$ 2.15, or if you prefer soda, a liter of soda will cost you US$ 1.06.
It’s difficult to speculate how Filipinos will react if it happened in the country but UAE residents aren't really jumping for joy about it.
The concern of the general population is the negative effect it has on the economy of the oil rich Arabian Emirates.
Environmental specialist Hassan Galadari emphasizes how the continuous drop in petrol prices may slow down the automotive industry’s shift to developing more vehicles using hybrid or alternative sources of propulsion. It may also affect sales of vehicles that are environmentally friendly.
The main reasons for the decline in global oil prices is due to oversupply brought about by more efficient oil extraction methods. The Organization of Petroleum Export Countries (OPEC), instead of traditionally cutting production has increased oil output to adjust to the lower prices. Iran has also re-emerged as a major exporter of oil with the recent lifting of sanctions against sanctions; the country has one of the world's largest supply of oil.
But enjoy it as much as you can because the global oversupply is expected to be overtaken by the increased demand sometime this year.
"Iran's possible production increase of 500,000 barrels per day this year won't be enough to meet the expected demand," he said. "It's difficult to see where the new oil supply is coming from this year to fill the expected annual demand increase of at least 1.3 million barrels a day," said UAE Energy Minister Suhail Al Mazrouei.