Fuel prices for the month of May have been announced in the UAE by the Ministry of Energy and Industry. According to the announcement made on April 29, 2019, the prices for all types of fuel have been increased in the UAE yet again. It is the third consecutive increase in the fuel prices, which will add to the financial worries of motorists on a tight budget. The fuel prices have fluctuated from one extreme to another during 2019, which has made it extremely difficult for motorists to maintain a steady fuel budget.
Fuel Prices for May 2019 in the UAE
Fuel prices for the month of May have been announced by the Ministry of Energy and Industry. The prices for all types of fuel have been increased including the price of petrol, which means refueling fuel tanks will become costlier for motorists during the month of May. The new fuel prices in the UAE are inclusive of 5% Value Added Tax (VAT).
The fuel prices for May 2019 in the UAE are given below:
- The new price of diesel is AED 2.53/litre, which is up by 4 fils from last month.
- The price of Super 98 is up by 25 fils and its new price is AED 2.48/litre.
- The price of Special 95 has been increased by 23 fils and its new price is AED 2.34/litre.
The liberalization strategy for fuel prices was implemented in August 2015, after which several market factors started to impact fuel prices in the UAE. Since the implementation of the liberalization strategy, the fuel prices have been fluctuating regularly, however, the prices have increased for most of the months during this period.
For an instance, if we analyze the fuel price trends from start of 2017 till May 2019, fuel prices have increased for 18 out of 29 months, which shows how drastically fuel prices have increased in the UAE over the last two years.
إليكم أسعار الوقود ⛽ لشهر مايو وفقاً لما ذكرته لجنة متابعة أسعار الوقود في الإمارات. #طاقة_مُلهمة pic.twitter.com/QIplQJQ7E5
— ENOC (@enoc_official) April 29, 2019
How fuel prices are set in the UAE?
Fuel prices are changed every month and there are a number of factors that the Ministry of Energy and Industry takes into account while setting new prices. Since the implementation of liberalization strategy, fuel prices move with the market, which means several market factors can have a direct or indirect effect on fuel prices in the UAE. It is important to note that fuel prices for every month are inclusive of the 5% Value Added Tax (VAT). Value Added Tax was implemented in the UAE on January 1, 2018 and since then, all commercial and business activities are subject to 5% VAT.
Given below are the other factors that are taken into consideration while setting fuel prices in the UAE.
Price of Brent
Brent is the global benchmark for crude oil and the latest price of Brent in the international market is considered while setting new fuel prices in the UAE. Any rise or fall in the price of Brent directly affects the fuel prices in the UAE.
OPEC Agreement 2019
The Organization of the Petroleum Exporting Countries (OPEC) has recently signed a new agreement to reduce oil production to 1.2 million barrels per day. This agreement has affected fuel prices globally including the UAE. The recent increase in the UAE’s fuel prices is caused by fluctuations observed in the price of Brent due to OPEC agreement 2019.
Platts Benchmarks
Platts is an organization that provides vital information about the latest market trends and global oil prices. This information is considered important while setting new fuel prices in the UAE.
How Motorists Can Manage their Fuel Expense in the UAE?
Motorists in the UAE need to figure out ways that can help them in managing their fuel expense. The fuel price trends of this year clearly suggest that fuel prices will continue to fluctuate in the coming months, which will add to the worries of motorists if they don’t find out a way to put a cap on their fuel expense.
While fuel-saving practices can be adopted by motorists to reduce their fuel expense, it cannot be considered as a long-term solution. The long-term solution for financial worries of motorists on a tight budget lies in bringing a much-needed change to their mindset and switching from their combustion engine vehicles to Electric Vehicles (EVs).
Electric vehicles ensure zero emissions and are considered as an eco-friendly commuting option. This is the major reason why the UAE Government has launched an extensive incentive program for EV owners and buyers to promote the sales of EVs. Additionally, these vehicles don’t need conventional fuel at all, which means motorists will not need to worry about fluctuations observed in fuel prices if they switch from their conventional combustion engine vehicles to EVs. Electric vehicles of modern-day are equipped with the latest technologies and are more dynamic in their capabilities than combustion engine vehicles.
Given below are some of the latest EVs that people in the UAE can consider buying:
- Tesla Model 3
- Nissan Leaf
- Audi e-Tron
- BMW i3
- Kia Niro EV
- Hyundai Kona EV
- Jaguar I-Pace
- Hyundai Ioniq
EVs offer a reliable solution to motorists to get rid of their financial worries induced by fluctuations observed in fuel prices. Switching to EVs will also offer motorists an opportunity to avail benefits and incentives that are exclusively offered to EV owners and buyers including Green Registration Program, free parking and free charging stations for EVs across the country.
If you are planning to sell your combustion engine car to buy a fuel-efficient hybrid or EV, then don’t forget that with us, you can sell any used car in just 30 minutes while all the post-sale paperwork is handled by SellAnyCar.com’s team.
