The Ministry of Energy has announced fuel prices for the month of September in the UAE. The fuel prices were announced on August 29, 2018 and according to the announcement, the fuel prices have been increased for the second consecutive month. This is collectively the sixth month when the fuel prices have increased this year, which will add to the financial worries of motorists on a tight budget. In August 2018, the prices for all types of petrol variants were increased while the price of diesel was decreased. For the month of September, the prices have been increased for all types of fuel including diesel.
Fuel Prices for September 2018
Fuel prices in the UAE have been based on the international oil prices since August 2015. Between August 2015 and August 2018, the months that have recorded an increase in fuel prices clearly outnumber the months when fuel prices were decreased. Fuel prices have jumped to a record-breaking level during 2018 and September fuel prices will be the second highest in last three years.
For September 2018, the prices for two petrol variants have been increased by 2 fils per litre while the diesel price has been increased by 1 fil per litre. The price of diesel had come down by 3 fils per litre last month.
The new fuel prices by fuel-type are given below:
- The new price of Super 98 will be AED 2.59/Litre.
- The price of Special 95 for the month of September will be AED 2.48/Litre.
- Diesel will be available at a price of AED 2.64/Litre in the month of September.
The fuel prices for September in the #UAE as announced by the UAE Fuel Price Committee ⛽ pic.twitter.com/0cuInAdfen
— ENOC (@ENOC) August 29, 2018
Fluctuations in Fuel Prices since the Start of 2017
Fuel prices have increased tremendously during 2018, however, it hasn’t come as a surprise for motorists. The fluctuations recorded in fuel prices since the start of 2017 suggested that fuel prices could rise significantly at any time, which eventually happened in February 2018 when fuel prices were increased to a record-breaking level.
The table given below clearly shows how fuel prices have been fluctuating since January 2017.
Also read: An Introspective Analysis of Fuel Price Trends in the UAE during the First Half of 2018
Which Factors Affect Fuel Prices in the UAE?
Fuel prices are fundamentally based on the price of Brent (Global benchmark for Crude Oil) in the international markets. Any fluctuation observed in the price of Brent directly affects the price of fuel in the UAE. Brent was trending at a high price of $76 per barrel on August 29, 2018, which resulted in an increase observed in fuel prices for the month of September. In addition to this, the Ministry of Energy also takes into account the Platts Benchmarks (latest information on price of crude oil and gasoline products) to determine fuel prices every month. Another factor that affects the monthly price of fuel in the UAE is the transportation cost of fuel.
One more factor that now influences fuel prices in the UAE is the addition of 5% Value Added Tax (VAT) to fuel prices. VAT was implemented in the UAE at the start of 2018 and since then, all commercial and business activities have been subject to VAT implementation. The addition of 5% VAT to new fuel prices every month is also a reason why fuel prices have surged so significantly during 2018.
Managing Fuel Expense in the UAE
It has become critical for motorists in the UAE to find ways of minimizing their dependence on the conventional fuel amidst regular fluctuations observed in fuel prices. There are a number of fuel-saving practices that motorists can adopt to manage their monthly fuel expense better, however, this is not be a long-term solution to put a cap on fuel expense for motorists on a tight budget.
Fuel prices are expected to increase in the coming months as well and in such circumstances, it is important for motorists to bring a much-needed change to their mindset and look for the alternatives of combustion engine vehicles such as hybrids and Electric Vehicles (EVs).
While the hybrids are fuel-efficient vehicles and decrease the dependence on conventional fuel, EVs don’t need conventional fuel at all. EVs generate power from electric batteries and also ensure zero emissions as they don’t host any combustion process under the hood unlike conventional petrol or diesel engine vehicles.
Buying an EV can be an ideal decision for motorists who don’t want to be at the receiving end of regular fluctuations observed in fuel prices. It can also be a good decision because the government of the UAE offers a number of exclusive incentives and benefits to EV owners and buyers.
To know about the incentives and benefits offered to electric vehicle owners and buyers in the UAE, read our blog titled, New Incentive Program Encourages the Buying of Electric Vehicles 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.
