Fuel prices for the month of December have been announced by the Ministry of Energy in the UAE. According to the announcement made on November 29, 2018, the prices for all types of fuel have been decreased. This is the second consecutive month of partial/collective decrease in fuel prices, which is a welcomed change in fuel price trends.
The prices for petrol variants were decreased last month while diesel recorded a hike in its price. For the month of December, prices for all fuel types have been decreased, much to the delight of motorists on a tight budget. Fuel prices have increased tremendously during 2018 and the current decline in prices will help reduce the financial worries of motorists on a tight budget.
New Fuel Prices in the UAE
The UAE Fuel Price Committee has released the new prices for three petrol variants and diesel. Fuel prices have been decreased for the month of December, which is not a surprising development as several experts had already predicted a significant reduction in fuel prices for the last month of the year. The new fuel prices are inclusive of Value Added Tax (VAT), which has been applicable on all business and commercial activities since January 1, 2018.
The new fuel prices are given below:
- The new price of Super 98 petrol is AED 2.25/Litre, which has come down from its previous price of AED 2.57/Litre.
- Special 95 has been priced at AED 2.15/Litre while the old price of this petrol variant was AED 2.46/Litre.
- The new price of E-Plus 91 is AED 2.05/Litre, while the price of E-Plus 91 in November was AED 2.38/Litre.
- The price of diesel has come down from AED 2.87/Litre in November to AED 2.61/Litre in December.
December fuel prices have been released by the UAE Fuel Price Committee. Stay tuned to our social channels for future pricing updates. pic.twitter.com/U3dZHJdjVD
— ADNOC Distribution (@ADNOCdist) November 29, 2018
The drop in petrol prices has been attributed to a massive decline observed in the price of Brent (Global Crude Oil Benchmark) in the international markets. The rise and fall in the price of Brent directly affects fuel prices in the UAE and as Brent was trading at a considerably low price of $58 per barrel during November’s last week, it resulted in a significant drop observed in the UAE’s fuel prices for December.
Future Fuel Price Trends in the UAE
Experts predicted fuel prices to drop in December amidst several market fluctuations induced by multiple global factors. However, the oil market factors are expected to be stabilized soon, which means that the fuel price can increase in coming months.
Also read: An Introspective Analysis of Fuel Price Trends in the UAE during the First Half of 2018
How to Put a Cap on Your Fuel Expense in the UAE?
The fuel prices have been fluctuating in the UAE for more than three years now. These fluctuations have made it extremely difficult for motorists on a tight budget to set a fixed monthly fuel budget. Despite two months of decrease in fuel prices, the worries of motorists on a tight budget are far from over. Fuel prices are expected to hike in the coming months, which will again increase financial pressure on motorists. In these circumstances, it is important to adopt fuel-saving practices that can help motorists keep their monthly fuel expense in check.
Here are some important fuel-saving tips that motorists can follow:
- A well-maintained vehicle consumes less fuel, which adds to the importance of maintaining a vehicle on a regular basis. Motorists should follow the instructions mentioned in their car owner’s manual to schedule maintenance and service checkup of their vehicle.
- Avoiding frequent trips and managing most of the errands on a single long trip can help reduce fuel expense.
- Avoiding aggressive driving can be helpful in reducing fuel consumption.
- Using public transport more frequently can help keep monthly fuel expense in check.
Besides these useful fuel-saving practices, motorists should also consider a long-term solution for their financial worries related to fuel expense. The ideal long-term solution can be to shift from combustion engine vehicles to Electric Vehicles (EVs) that don’t need conventional fuel at all. EVs generate power from electric batteries and offer an excellent driving range.
EVs ensure zero emissions and this is a reason why the UAE government is also encouraging people to shift from their combustion engine vehicles to EVs. A number of incentives and benefits including free charging stations and free parking for EVs have been offered to EV owners and buyers in the UAE in a bid to increase the sales of EVs.
For details of all the benefits and incentives offered to EV owners and buyers in the UAE, read our blog titled, New Incentive Program Encourages the Buying of Electric Vehicles in the UAE.
Bottom-line
The decrease in fuel prices for the month of December is a positive development that will end 2018 on a good note for motorists on a tight budget. However, the future trends suggest that fuel prices will increase in the coming months and motorists should be prepared to manage their fuel budget accordingly.
While adopting fuel-saving practices can be useful to manage fuel expense, shifting from a combustion engine vehicle to an EV can be a long-term option for motorists on a tight budget. This is how motorists can get rid of their financial worries induced by fluctuations observed in fuel prices.
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.
