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In recent years, all six Gulf monarchies—Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Oman, Qatar and Bahrain—have begun to challenge the notion that citizens are entitled to cheap energy. Policymakers hope higher energy prices can produce a number of helpful effects, the authors said.
Cheap gasoline is good news for the economies of most countries, but not those that rely on oil exports. The sustained fall in global prices has led oil-producing countries to search for ways to keep their revenues up. In some cases, that means cutting back on cheap gas for their own citizens.
Simply put, the world has too much oil at the moment which has resulted in the reduction of price levels from approximately $100 to $50 a barrel, and OPEC (as well as US shale producers) has a major role to play in this supply glut. The current oil price levels are nowhere near this. Nigeria’s dilemma.
Saudi Arabia and Kuwait might, and should be encouraged to do so. Petro-states are compensated to transition smoothly to a sustainable economy, avoiding a last-ditch attempt to flood the world with cheap oil and gas. Fossil-fuel exporters rush to produce as much as they can, despite falling prices and constraints on trade.
If we're talking about realistic Metro competitors here, the base 1992 Ford Festiva actually managed to undercut the price tag on the cheapest possible Metro two-door hatchback that year: $6,911 versus $6,999. The wretched 1992 Hyundai Excel base two-door was even cheaper, at $6,595 ($15,879 in today's spondoolies ).
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