Sunday, July 26, 2015

Will deregulating fuel prices negate the effects of Salik?

As the UAE gets ready to implement its newest policy pertaining to deregulating fuel prices, one wonders, will this initiative negate the effects of Dubai's Salik that it currently has on drivers?

When Salik went into implementation in 2007, many drivers slowly changed their routes to avoid the toll gate charges. Back in those days, the cap per day was set to be AED 24, which translated to AED 720 Salik monthly charges. It was later decided to remove the daily cap to further motivate drivers to use the Salik route less frequently. Say what you want, it is in my opinion that Salik did achieve success in its implementation, and this is particularly evident when you compare driving times between using Al Ittihad Road and Sheikh Mohammed Bin Zayed Road though the latter consists of more lanes.

But effective August 1, commuters will have a confusing choice to make. Depending on fuel prices, drivers will certainly prefer to choose the routes with the shortest distance to save on petrol costs. In the case with many residents, this could mean bringing them back to drive more on the Salik route. The alternative routes, due to Salik, are usually more congested during peak hours which means that fuel consumption will also be higher due to this factor. Hence, the solution to reducing driving expenses may not lay between figuring out which route is more economical to drive on, but in committing to new unfamiliar habits such as car pooling and splitting the cost of the ride.

What do you think?


Do you think that the deregulation of fuel prices will impact driving choices already altered by Salik?

Yes
No



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