The Ministry of Energy in the UAE announced the fuel prices for the month of December on Tuesday, November 28, 2017. Fuel prices have been increased yet again as the price of Brent (Global Benchmark for Crude Oil) surged above $60 per barrel last month. This was the highest increase in the price of Brent in last two years and as the fuel prices in the UAE are linked to the price of Brent, the fuel prices for December are also the highest since last 28 months.
Due to this, commuting will become considerably expensive for motorists who were hoping for an extended relief after the fuel prices dropped in November. Fuel prices for both petrol and diesel have been increased for the month of December.
December Fuel Prices in the UAE
In November 2017, the prices for different types of petrol were decreased, but the price of diesel was increased. However, in December, the change in prices for all types of fuel has been equally distributed for the month of December.
As per the announcement of the Ministry of Energy, listed below are the new fuel prices in the UAE.
- Price of Special 95 has been increased from AED 1.92/Litre in November to AED 2.04/Litre in December.
- Price of Super 98 has hiked from AED 2.03/Litre in November to AED 2.15/Litre in December.
- Price of E Plus-91 has also increased and the new price for E Plus-91 will be AED 1.97/Litre. In November, E Plus-91 was priced at AED 1.85/Litre.
- Price of diesel has increased once again. It will be available in the UAE for AED 2.20/Litre, while its price was AED 2.11/Litre in November.
Annual Summary of Fuel Prices in the UAE
The increase in December fuel prices has clearly added to the financial worries of motorists on a tight budget. However, this is not the first time that fuel prices have been increased in 2017. This is, in fact, the 8th occasion when fuel prices have been increased during 2017.
Let’s have a look at the fluctuations recorded in the fuel prices during 2017:
As the table clearly shows, fuel prices have increased in 8 out of 12 months since December 2016. Fuel prices increased consecutively in the first three months of the year after which the first decrease in fuel prices was recorded in April 2017. After that, another increase in fuel prices was recorded in the month of May before the prices dropped for two consecutive months in June and July.
After July, the fuel prices continued to increase for the next three months before the month of November when the fuel prices were decreased for the fourth time in 2017. Now, in December, fuel prices have been increased yet again, which means the year 2017 will not end on a good note for motorists on a tight budget.
Reasons behind Fluctuations in Fuel Prices
Fuel prices are linked with the global crude oil prices. The price of Brent surged above $60 per barrel in October in the anticipation of the expected extension of a deal between OPEC members. Consequently, the fuel prices also observed a significant increase for the month of December.
An agreement was signed between the OPEC members in December last year to reduce the oil production by about 1.8 million barrels per day in order to maintain the global crude oil prices. In line with this agreement, a 10% reduction was announced in the UAE’s oil exports on September 25, 2017.
In May 2017, the validity of this agreement was extended to March 2018 with mutual understanding of the OPEC members. The agreement signed between the OPEC members is the fundamental reason behind fluctuating fuel prices and these fluctuations will continue in 2018 as well if the OPEC members agree to extend this agreement after March 2018.
How Motorists Can Manage their Fuel Expense in the UAE?
Motorists on a tight budget can smartly manage their fuel expense in the UAE by adopting fuel-saving driving habits and by buying fuel-efficient vehicles that minimize the fuel cost of daily commute considerably. Fuel prices are expected to fluctuate in the coming months as well, which means motorists need to find ways of reducing their fuel expenses.
Here are some fuel-saving driving habits that you can follow to manage fuel expenses in the UAE:
- Schedule your daily errands in an efficient way to avoid unnecessary trips
- Plan your trip by using Google Maps to avoid traffic jams
- Avoid driving aggressively
- Keep your car’s tyres properly inflated
- Avoid unnecessary use of air conditioning system in the vehicle
These driving habits can help you minimize your fuel expense, but a better way of dealing with the worries of fuel expenses is to choose a fuel-efficient vehicle when you plan to upgrade your vehicle or look to buy a new one. There is a large variety of fuel-efficient vehicles available in the market and you need to choose one as per your preference and budget.
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
Eco-Friendly Vehicles Reduce the Fuel Expense to a Bare Minimum
Eco-friendly vehicles including hybrids and electric vehicles minimize the fuel expense to a bare minimum, which makes them an ideal option for car buyers in the UAE. Electric vehicles, in particular, are an excellent alternative to conventional vehicles as EVs don’t require a combustion engine to produce power. These EVs use an electric motor and ensure zero emissions and this is the reason why the Government of the UAE is also urging people to shift from their conventional vehicles to electric vehicles. There are also some significant incentives and benefits being offered to electric car buyers and owners in the UAE.
Bottom-line
Fuel prices have continued to increase throughout the year 2017 and managing fuel expense has become more difficult for motorists than ever before. In the current state of affairs, it is important for motorists to bring a positive change to their mindset and consider EVs as their first choice whenever they look to buy a new vehicle. Motorists who don’t plan to upgrade their vehicle to an EV soon should adopt fuel-saving driving habits so that they don’t find it difficult to manage their monthly fuel budget amid fluctuating fuel prices in the UAE.
If you are planning to upgrade your vehicle to an electric vehicle, then don’t forget that with us, you can sell your used car in just 30 minutes while all the post-sale paperwork is handled by SellAnyCar.com’s team.
