The Ministry of Energy in the UAE has announced fuel prices for the month of November. According to the new prices, the prices for different types of petrol have been decreased while the price of diesel has been increased. For three consecutive months before November, motorists in the UAE saw a hike in the prices of fuel which added to their financial burden.
The decrease in petrol prices for the month of November is a good sign, but generally, it has been a tough year for motorists to manage their fuel expenses as fuel prices have increased in 7 out of 11 months during 2017.
November Fuel Prices in the UAE
For the first time in 2017, the change in prices for all types of fuel has not been equally distributed. Petrol prices have been decreased up to 10%, which brings a much-needed relief for motorists, but the price of diesel has been increased marginally.
The new prices for petrol and diesel are listed below:
- The price of Special 95 has been decreased from AED 2.01/Litre in October to AED 1.92/Litre in November.
- The price of Super 98 has come down from AED 2.12/Litre in October to AED 2.03/Litre in November.
- The price of E Plus-91 has also been decreased and will now be available at a price of AED 1.85/Litre. In October, the price of E Plus-91 was AED 1.94/Litre.
- The price of diesel has been increased from AED 2.10/Litre in October to AED 2.11/Litre in November.
While any decrease in fuel prices is welcomed by motorists, the marginal drop in the November fuel prices will not make a substantial difference in the monthly fuel expenses of motorists. The fluctuations in fuel prices can be frustrating for motorists on a limited commuting budget as they have to set their fuel budget according to the rise and fall in fuel prices every month.
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
Effect of Global Crude Oil Prices on the Fuel Prices in the UAE
The fuel prices in the UAE are linked to global crude oil prices. On October 28, 2017, the per barrel price of Brent, the global benchmark for crude oil, surged above $60 for the first time in a period of more than two years. This massive development was a result of the expected extension of the OPEC deal for oil outputs.
The OPEC (Organization of Petroleum Exporting Countries) members signed an agreement in December last year to stabilize the crude oil prices globally by reducing the oil production to 1.8 million barrels per day. As a part of the deal, the Interior Minister of the UAE, Suhail Al Mazroui, announced a 10% reduction in oil exports on September 25, 2017. After the OPEC members agreed on an extension of the agreement in May 2017, this agreement will remain valid until March 2018. This OPEC agreement is a fundamental reason behind fluctuating fuel prices globally and in the UAE.
What can Motorists do to manage their Fuel expenses?
In the current state of affairs where the fuel prices are expected to continue to fluctuate in the UAE in the coming months, motorists must think of ways to manage their fuel expenses in an effective manner. Motorists who can easily switch from private vehicles to public transport for their daily commute can find a short-term solution to manage their fuel expenses.
The sustainable solution for managing fuel expenses is to switch from traditional combustion engine vehicles to hybrid or electric vehicles. While hybrid vehicles can drastically reduce the monthly fuel expenses, electric vehicles can completely liberate motorists from the effects of fluctuations in monthly fuel prices.
Electric vehicles use an electric motor to generate power instead of a combustion engine, which means these vehicles don’t require conventional fuel at all. On the other hand, motorists can also benefit from incentives offered by the UAE government to promote the sales of electric cars. These incentives include free charging stations in selected areas across the UAE, free parking benefits for electric vehicle owners and other incentives available for buying electric cars such as green registration, green bank loans and green insurance plans.
Listed below are some of the best electric cars of 2017 that are available in the UAE car market:
- Tesla Model X
- Tesla Model S
- Chevrolet Volt
- Ford Focus Electric
- Lexus CT
- KIA Soul EV
- Volkswagen e-Golf
- Hyundai Ioniq
- BMW i3
Electric cars are not only a fuel-efficient option for motorists, but they also offer amazing versatility and utility in their design and drivability. Car buyers can buy electric cars in almost all vehicle segments now, which has helped the electric car market to grow considerably not only in the UAE, but also across the globe. Buying an electric car is the most suitable option for motorists in the UAE as these vehicles can substantially reduce the monthly fuel expenses of the UAE motorists.
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