Fuel prices have been announced by the Ministry of Energy and according to the announcement, prices for all types of fuel have been increased for the month of March in the UAE. The Ministry of Energy announced the increase in fuel prices for the month of March on Wednesday, February 27, 2019. While the increase in fuel prices is an insignificant one, it will still add to the financial worries of motorists on a tight budget. Fuel prices have been fluctuating in the UAE for more than 3 years, which has made it extremely difficult for motorists to maintain a steady monthly fuel budget.
New Fuel Prices in the UAE
Fuel prices had been continuously decreasing in the UAE since November 2018, however, motorists will have to pay more to refill their vehicle’s fuel tank during the month of March as prices for all types of fuel have been increased. The decline in prices from November 2018 to February 2019 caused a drop of 66 fils in the prices of Special 95 and Super 98 while the price of diesel decreased by 59 fils during this period.
Given below are the fuel prices for the month of March 2019 in the UAE:
- The price of diesel has been increased by 13 fils for the month of March. The new price of diesel is AED 2.41/litre.
- The price of Super 98 petrol has been increased by 9 fils and it will be available at a price of AED 2.04/litre during the month of March.
- The new price of Special 95 for the month of March is AED 1.92/litre and it has been increased by 8 fils from its previous price.
The increase in fuel prices is a direct result of the increase in the price of Brent (the global benchmark for crude oil) in the international market. It is important to note that fuel prices for the month of March are inclusive of the Value Added Tax (VAT), which has been implemented on all commercial and business activities in the UAE since January 1, 2018.
Check out the fuel prices for the month of March as announced by the #UAE Fuel Price Committee ⛽. #InspiringEnergy pic.twitter.com/MqFa21LbPV
— ENOC (@enoc_official) February 27, 2019
Why Fuel Prices have been increased in the UAE?
Fuel prices were liberalized in the UAE in August 2015 and since then, fuel prices move with the market. Any rise or fall in the price of Brent directly affects the fuel prices in the UAE and the increase in fuel prices for the month of March is a result of increase in the Brent price. The latest Brent price is taken into account while setting the monthly fuel prices in the UAE.
Fuel prices were decreased in February as Brent was trading at a low price of $61.28 per barrel on January 30, 2019. The fuel prices have been increased for March 2019 as Brent was trading at a price of $65.65 per barrel on February 27, 2019.
Bottom-line
Fuel prices have been fluctuating in the UAE since the liberalization of fuel prices in August 2015. These fluctuations have mounted immense financial pressure on motorists who have found it difficult to manage their fuel expense effectively. The trend of fluctuations in fuel prices is expected to continue in the future as global crude oil prices are expected to fluctuate in the coming months. In this scenario, it has become important for motorists to follow fuel-saving driving practices that can help them in managing their fuel expense efficiently.
Additionally, motorists can also consider switching from their combustion engine vehicles to Electric Vehicles (EVs) that don’t require conventional fuel at all. EVs generate power from electric batteries and can be an excellent alternative to combustion engine vehicles for motorists who are worried about fluctuating fuel prices in the UAE.
The UAE government offers electric car owners and buyers several incentives and benefits so that sales of EVs can be boosted in the country. From free charging stations to exclusively available parking spaces for electric vehicles, there are a number of benefits that EV owners and buyers can avail in the UAE. This is how switching from conventional combustion engine vehicles to EVs can benefit motorists in multiple ways. It can particularly help motorists on a tight budget in finding a long-term solution for their worries regarding fluctuations observed in the fuel prices.
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