Photograph by Beth Wald, Aurora Photos/Alamy
Four-wheel-drive vehicles careen over sand dunes in the United Arab Emirates, a nation that burns some of the cheapest gasoline in the world.
The UAE is a major producer of both natural gas and oil, yet rising domestic demand has required the country to import natural gas and cut the volume of liquid fuel available for export.
At nearly $2,500 per person, the country's 2010 subsidies, totaling $18.2 billion, were second only to Kuwait's on a per capita basis, according to the IEA.
Much of the natural gas used domestically is burned in power plants to generate electricity. Demand for power is rising due to population and economic growth. In addition to sapping oil reserves and possible export revenue, domestic demand for fossil fuel has turned the country into a large-scale polluter. In 2007, the UAE produced nearly five times the world average of carbon dioxide per capita.
The UAE has in the past considered phasing out fossil fuel subsidies, but the Federal National Council in May recommended the government further cut gasoline prices.
An irony for UAE is that foreigners, who make up 89 percent of the population, are the biggest beneficiaries of the nation's cheap fuel.
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