The Ministry of Energy in the UAE has announced fuel prices for the month of July, 2018. The announcement was made on June 28, 2018 and according to this announcement, fuel prices have been decreased for the month of July. This comes as a positive development for motorists on a tight budget as fuel prices have been increased in most of the months during 2018 so far.
Though the fuel prices for the month of July have been decreased, the regular fluctuations recorded in this year’s fuel prices have made commuting considerably costly for motorists on a tight budget. Almost every month, motorists have to adjust their fuel budget according to changes in the fuel prices as fuel prices have been fluctuating for more than two and a half years now.
July Fuel Prices in the UAE
Fuel prices have been decreased for the month of July and though the decrease in prices from last month is not big by any means, it will still be a welcome change for motorists on a tight budget. Despite a small decrease in prices for July, this change means a lot to motorists as the general price trends of last one and a half year clearly suggest that regular hikes in fuel prices can be expected in upcoming months as well.
In 2018, four out of seven months have recorded an increase in fuel prices, twice the prices have decreased while fuel prices remained unchanged for one month (April).
Here are the fuel prices by fuel-type for the month of July in the UAE:
- Super 98 will have a new price of AED 2.56/Litre in July. It records a decrease of 7 fills from the last month’s price.
- The price of Special 95 will be AED 2.45/Litre for the month of July. It has decreased by 6 fills from its price in the month of June.
- The price of diesel has also been decreased by 5 fills and its new price in July will be AED 2.66/Litre.
Fuel prices in July have decreased, however, to the extent that prices had increased in the earlier months of 2018, this small change in price will not make a huge difference to how motorists manage their fuel expense. The table below shows that despite the decrease, July fuel prices are still the second highest in two and a half years.
The fuel prices for July in the #UAE as announced by the UAE Fuel Price Committee pic.twitter.com/OscjbhSBZJ
— ENOC (@ENOC) June 28, 2018
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
Which Factors Affect Fuel Prices in the UAE?
Fuel prices in the UAE have been fluctuating for many reasons as there are several factors that affect fuel prices. Motorists must know that fuel prices are linked with the price of Brent (Global benchmark for crude oil) and any increase or decrease in Brent Price reflects in the fuel prices for the upcoming months. Price of Brent has been trading quite high in the global market during last couple of months, which caused fuel prices to jump significantly for the month of May and June in the UAE.
Besides Brent price, other factors such as Platts Benchmarks and transportation cost of fuel also affect fuel prices significantly. Another factor that is a major reason behind fuel prices to increase drastically during 2018 is the addition of 5% VAT to the price of all types of fuel. Value Added Tax (VAT) was implemented in the UAE on January 1, 2018 and since then, 5% VAT has been applied to all commercial and business activities.
Also read: An Introspective Analysis of Fuel Price Trends in the UAE during the First Half of 2018
How to Manage Your Monthly Fuel Budget Better?
Motorists need to plan their fuel expense in a way that any fluctuations observed in fuel prices shouldn’t affect their budget considerably. Motorists can do many things to achieve that and the one thing every motorist can do or plan to do in the near future is to switch from their conventional combustion engine vehicles to more fuel-efficient hybrids and Electric Vehicles (EVs).
While Hybrid vehicles can potentially cut the fuel expense in half, EVs ensure that you don’t need to spend on conventional fuel at all. EVs have electric batteries to generate power and hence they don’t need conventional fuel. The new and upcoming EVs are also capable of delivering efficient drive range, which makes them an excellent alternative to the combustion engine vehicles. The Government of the UAE is also encouraging people to buy EVs in the UAE and have introduced a number of incentives and benefits for buying and owning an EV. Here is the detail of incentives and benefits offered to electric car owners and buyers in the UAE.
While switching to an EV can be a long-term solution to avoid financial worries caused by fluctuating fuel prices, there are some driving practices that can be adopted to minimize one’s fuel expense. These fuel-saving practices include:
- Maintenance of a vehicle on regular basis
- Limiting the number of daily errands
- Frequent use of public transport
- Adopting defensive driving habits and avoiding aggressive driving
- Selecting the right type of fuel according to the instructions mentioned in the car owner’s manual
These fuel-saving driving practices can be adopted to remain less affected by the monthly changes in fuel prices. Motorists can also consider buying EVs whenever they plan to buy their next vehicle as fuel prices can continue to fluctuate in the UAE in the coming months as well and finding a long-term solution to manage fuel expense is critical for all motorists on a tight budget in the UAE.
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.
