Price paradox pops up in soft drink vending machines

There is a price paradox in vending machines following the implementation of excise tax in the UAE. Many vending machines that dispense soft drinks and energy drinks have not implemented the new tax because their pricing systems have to be updated.

Residents may continue to find tax-free soft drinks and energy drinks in some vending machines, but this situation may not last long, Gulf News has learnt.

Fizzy drinks are still priced at Dh2 in a vending machine at Dubai Municipality headquarters in Deira. Vending machines in residential communities like Al Khail Gate have also not been updated.

Jonaliza Magsino, a counter staff in an office canteen that has a soft drink vending machine, said the facility will take time to increase prices of the beverages.

“Our company has already told us to change the prices, but our billing system needs to be changed first,” she said.

However, some companies running vending machines in Dubai offices started changing the price tags for soft drinks on Sunday.

Comparative cost

Mohammad Faisal, who works with a coffee vending company, which also provides snacks and soft drink vending services, was changing price tags of fizzy drinks from Dh2 to Dh3 in one machine on Sunday.

The prices of soft drinks dispensed through vending machines have always been higher compared to groceries and supermarkets.

A regular 300ml can of soft drink that cost Dh1.50 in retail shops was priced at Dh2 in most vending machines.

While some energy drinks like Red Bull cost Dh5.50 or Dh6 per 250ml can in retail shops, they have been sold for Dh7 or more in vending machines.

With the 50 per cent and 100 per cent hike in prices of carbonated sugary drinks and energy drinks respectively after the implementation of the new excise tax, beverages sold through vending machines will become even more expensive.