Fuel prices for the month of February have been announced in the UAE by the Ministry of Energy. According to the announcement, the prices for all types of fuel have been increased once again, making it the third consecutive month of increase in the prices. Fuel prices in January increased to a new record-breaking two-year high and February fuel prices are now the highest since August 2015.
The increase in fuel prices has been attributed to a recent surge in the per barrel price of Brent (Global Benchmark for Crude Oil). The price of Brent reached $71 per barrel on Jan 25, 2018, which was the highest since 2014 and it has significantly affected fuel prices in the UAE for the month of February.
New Fuel Prices in the UAE
A steady increase of 5% to 7% has been observed in the prices of different types of fuel. This increase will clearly add to the financial worries of motorists on a tight budget as commuting will become costlier in the UAE from February.
Here are all the fuel prices by fuel-type for the month of February in the UAE:
- Price of Special 95has jumped from AED 2.12/Litre in January to AED 2.25/Litre in February, marking a 6% increase.
- Price of Super 98 has hiked from AED 2.24/Litre in January to AED 2.36/Litre in February, marking a 5% increase.
- Price of E Plus-91 has increased from AED 2.05/Litre in January to AED 2.17/Litre in February, marking a 5.8% increase.
- Price of diesel has increased by 6.8%. The price for diesel in February will be AED 2.49/Litre, which has been increased from AED 2.33/Litre in January.
The fluctuating fuel prices in the UAE have continued to mount financial pressure on motorists over the last two years. The global crude oil prices have continued to surge, which has resulted in fluctuations recorded in the UAE’s fuel prices. In 2017, 8 out of 12 months recorded an increased in the fuel prices and this trend is expected to continue in 2018 as well.
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
Reasons behind Increase in Fuel Prices
The fuel prices have increased for the third consecutive month in the UAE and the increase recorded in the price for all types of fuel has been massive in these three months.
Listed below are the major reasons behind increasing fuel prices in the UAE:
- A decline in global oil inventories, which has continued to surge the crude oil prices.
- An agreement signed between the OPEC members to reduce the oil production by about 1.8 million barrels per day in order to stabilize the crude oil price. Currently, this agreement is set to expire in March 2018, but there are high expectations regarding the extension of this agreement.
- Fuel prices in the UAE have also increased because of the implementation of 5% VAT on fuel prices. VAT has been implemented for the first time in the UAE on all commercial and business activities from the start of 2018.
These are the fundamental reasons behind the increase in fuel prices, which has continued to make commuting expensive. Motorists on a tight budget now need to look for ways to manage their fuel expense in a better way as experts have predicted that fuel prices will continue to increase in the UAE throughout 2018.
Also read: Top 5 Fuel-Efficient Cars under AED 60,000 in the UAE
Best Practices to Manage Fuel Expense in the UAE
The global crude oil prices are expected to increase in 2018, which increases the need for managing fuel expense in a better way. Motorists on a tight budget can adopt different practices to control and manage their fuel expense.
These fuel-saving practices are:
- Avoid aggressive driving as it can increase the consumption of fuel.
- Use public transport more often and minimize the use of your private vehicle.
- Try to manage multiple daily errands into one big trip.
- Maintain your vehicle on a regular basis as a well-maintained vehicle delivers better fuel efficiency. It is ideal to schedule the maintenance of your vehicle according to the car owner’s manual.
- Sell your used car and upgrade to a hybrid or an Electric Vehicle (EV) that can reduce your fuel expense to a bare minimum. EVs are an environment-friendly alternative to the combustion engine vehicles that are an excellent option for motorists who are worried about increasing fuel prices in the UAE.
Upgrading to an EV can be a long-term solution for managing fuel expense in the UAE. The government of the UAE has also been urging motorists to opt for electric vehicles and many incentives have been offered to electric car buyers and owners in the UAE. Authorities aim to improve air quality by reducing the carbon footprint of the country by pushing the sales of EVs in the coming years.
For the list of all benefits that are offered to electric car buyers and owners in the UAE, read our blog titled, New Incentive Program Encourages the Buying of Electric Vehicles in the UAE.
If you are planning to upgrade your vehicle to an electric vehicle, then don’t forget that with us, you can sell your used car in just 30 minutes while all the post-sale paperwork is handled by SellAnyCar.com’s team.
