Fuel prices for August have been announced by Ministry of Energy in the UAE. According to the announcement, prices for all types of fuel have been increased on the basis of a newly set benchmark, which follows a new strategy of liberalizing the fuel prices from the start of 2017. The liberalization of fuel prices ensures that prices for different types of fuel are not widely spread and a regular percentage of increase or decrease in fuel prices is maintained.
Analysis of Fluctuations in Fuel Prices
Fuel prices are set to increase from Tuesday, August 01, 2017, after two months of a consecutive decrease in the prices. A reasonable decrease in the fuel prices was also observed in April when fuel prices were decreased for the first time in 2017. It is important to note here that fuel prices have predominantly increased in the UAE since the start of 2016.
The twenty-month analysis from January 2016 to August 2017 reveals that the number of months with an increase in fuel prices easily exceeds the number of months when the prices were decreased. Fuel prices were increased twelve times in these twenty months while the decrease in fuel prices was recorded only in eight months.
Also read: Fuel Prices Decreased for the Month of April in the UAE
Effect of Fluctuating Fuel Prices on Motorists
The regular fluctuations in the fuel prices have increased the financial worries of motorists in the UAE for whom, the monthly fluctuations mean a complete resetting of their monthly fuel budget. Since the new strategy of liberalization of fuel prices focuses on bringing a streamlined change in the fuel prices every month, the prices for all types of fuel as a whole witness an increase whenever the fuel prices are increased. This mounts extra pressure on motorists as commuting becomes costlier when fuel prices increase.
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
Percentage Increase in the August Fuel Prices
Fuel prices have been increased for both petrol and diesel. Though the increase in fuel prices is not massive by any means, but it still is a change that asks motorists to reconsider their fuel expenses.
This is what motorists will have to pay for fuel in the month of August:
- The price of Special 95 has been increased from AED 1.75/Litre in July to AED 1.78/Litre in August which marks an increase of 1.7%.
- The Super 98 witnesses an increase of 1.6% from its July price of AED 1.86/Litre. The new price for Super 98 will be AED 1.89/Litre.
- The price of E-Plus has observed a percentage increase of 1.8% and will now be sold at AED 1.71/Litre. Its price in July was AED 1.68/Litre.
- The price of Diesel has also been increased. With a notable percentage increase of 2.2%, the new price of diesel will be AED 1.88/Litre in the UAE. In July, the price of diesel was AED 1.84/Litre.
With new fuel prices for the month of August announced, it continues the predominant trend of increase in prices for all types of fuel, which is mainly influenced by fluctuations observed in global crude oil prices. The irregularities in the supply-demand equation of the crude oil have resulted in fluctuations observed in the regional fuel prices.
The International prices for crude oil have hiked massively and an increase of 10% has been observed so far this year. This increase has taken place as a result of the extension of the agreement to limit the production of oil between the OPEC and non-OPEC exporters of Oil.
How to Manage Fuel Expenses in the UAE?
With regular fluctuations observed in the fuel prices, managing fuel expenses has become tough for motorists in the UAE. The present scenario asks the motorists to adopt fuel-saving driving habits, increase the use of public transport for daily commute and prefer to buy fuel-efficient vehicles.
Electric and hybrid vehicles are the best options when it comes to buying a fuel-efficient vehicle in the UAE. While hybrid vehicles reduce the fuel expenses as they use an alternate source of power other than the combustion engine, the electric vehicles (EVs) completely bring the fuel expenses down to a bare minimum as they use much cheaper alternate fuel, that is, electricity.
Hybrid and electric vehicles are now available in great variety and car buyers can buy these fuel-efficient vehicles without compromising on their preferences for design and utility in a vehicle. Earlier, the hybrids and EVs used to have a distinctive design and shape, which was a limiting factor to their sales, but car brands like Tesla, Volkswagen and BMW have completely redefined the potential of these vehicles. Modern EVs from major auto manufacturers offer an excellent alternative to the combustion engine vehicles in terms of performance, utility and aesthetics.
Listed below are some of 2017’s best EVs and hybrids that people in the UAE can buy in order to limit their fuel expenses:
- Toyota Prius Prime
- Hyundai Ioniq
- Volkswagen e-Golf
- Ford Focus Electric
- Tesla Model S
- Tesla Model X
- KIA Soul EV
- Chevrolet Volt
- BMW i3
- Lexus CT
You will not only be able to reduce your fuel expenses significantly by buying a hybrid or electric vehicle but also be able to avail a number of advantages that are offered to car owners of hybrid and electric vehicles in the UAE. The UAE government offers a number of benefits to the owners of hybrid and electric cars as these vehicles are eco-friendly vehicles with fewer CO2 and dangerous gases emissions. From free charging stations to earning green points from RTA Dubai, there are a number of incentives announced by the government of the UAE for the owners of hybrid and electric cars.
If you are planning for a quick shift from your traditional combustion engine vehicle to a hybrid or electric vehicle, then don’t forget that you can sell your used car in just 30 minutes to SellAnyCar.com while all the post-sale paperwork is handled by SellAnyCar.com’s team.
