The UAE will deregulate domestic fuel prices starting in August 2015 to link prices with global levels. This move is expected to boost the UAE economy and government finances by reducing fuel consumption and subsidies. It will encourage fuel efficiency and use of electric vehicles. Lower oil prices provide a good opportunity to implement this reform with less inflationary impact. The deregulation is also expected to influence consumer and business behavior to reduce reliance on fossil fuels in the long run. Other Gulf states may follow the UAE's example of cutting fuel subsidies.