The United Arab Emirates has slashed gasoline subsidies, raising the cost of a liter of regular gasoline by 24 percent amid globally low oil prices that have cut into the country's revenues.

The UAE announced Tuesday that starting Aug. 1 drivers will pay 2.14 dirhams (58 cents) per liter of gasoline at the pump instead of 1.72 dirhams (47 cents), or about $2.21 a gallon instead of $1.78.

Despite the move by the Energy Ministry, officials will still have a hand in setting prices. Average international prices will be used as a benchmark to announce prices for the following month.

The price of diesel will meanwhile be lowered. Drivers will pay 2.05 dirhams a liter instead of 2.90 dirhams, a 29 percent decrease.