Fuel prices have been announced by the Ministry of Energy in the UAE. According to the announcement made on March 28, 2018, the petrol prices will remain unchanged from the last month while the diesel price will be decreased by 3 fills for the month of April. This comes as a delightful new development for motorists on a tight budget as managing fuel expense had become extremely difficult after the fuel prices hiked massively in the first two months of 2018.
A Summary of Fuel Prices in 2018
In 2017, fuel prices increased in 8 out of 12 months, which added to the financial worries of motorists. The start of 2018 was not a good one either, as the first two months of the year observed a record-breaking hike in the fuel prices. The fuel prices were decreased for the first time in the month of March and now motorists will have an extended relief with petrol prices to remain unchanged in April and diesel prices decreasing further.
Fuel Prices in the UAE for the Month of April
As stated earlier, the petrol prices will remain unchanged from the last month and only the diesel price will be changed for the month of April.
Here are the fuel prices for the month of April in the UAE:
- Price of Special 95 will be AED 2.22/Litre.
- Super 98 will be priced at AED 2.33/Litre.
- E Plus-91 will be sold at AED 2.14/Litre.
- Price of diesel witnessed a significant decline last month and to the delight of motorists who drive diesel-powered vehicles, the new price of diesel will be AED 2.40/Litre, which has come down from its March price of AED 2.43/Litre.
The stability in fuel prices will be welcomed by all motorists, especially the ones on a tight budget.
The fuel prices for April in the #UAE as announced by the UAE Fuel Price Committee ⛽ pic.twitter.com/meqG1xgoHo
— ENOC (@ENOC) March 28, 2018
Also read: 7 Fuel-Saving Driving Tips for Motorists in the UAE
How Fuel Prices Are Set in the UAE?
In order to plan your fuel expenses effectively and better manage your budget, you need to understand how the fuel prices are set in the UAE and which factors influence the fuel prices. This will help you in understanding what causes an increase or decrease in the fuel prices, which can potentially prove to be helpful in predicting the trend for fuel prices in the upcoming months. Being aware and prepared can make life a lot easier for motorists on a tight budget as fluctuations observed in fuel prices won’t hurt much if you have planned your monthly budget accordingly.
Here are the factors that influence the fuel prices in the UAE.
Price of Brent
The fuel prices in the UAE are directly linked with the price of Brent (A global benchmark for Crude Oil) and as the price of Brent has gradually decreased in the last few months, fuel prices have also decreased in the UAE and haven’t fluctuated much.
OPEC Agreement
Another reason why the fuel prices have decreased in March and April is that the OPEC agreement has not been extended yet. This agreement was signed between OPEC countries to reduce oil production by about 1.8 million barrels per day, which resulted in fluctuations observed in fuel prices. This agreement has expired in March and while January and February recorded a massive hike in fuel prices in anticipation of an extension of the OPEC agreement, the collective fuel prices for March and April have decreased as the extension in the OPEC agreement has not materialized yet.
Fuel Transportation Cost
Any change in the transportation costs of the fuel also affects the fuel prices in the UAE. All changes in the fuel prices that are influenced by the change in fuel transportation costs are approved by the Ministry of Energy in the UAE.
Benchmarks Set by Platts
The Ministry of Energy also considers the benchmarks set by Platts while finalizing the new fuel prices at the end of each month. Platts is a global organization that provides information and assessment about physical market and pricing of crude oil and gasoline products in the international markets.
How do You Prepare for the Next Fuel Price Change in the UAE?
With fluctuations recorded in fuel prices over the last few years, it is important for motorists to find a sustainable solution to better manage their monthly fuel expense. As a motorist in the UAE, you must understand that the UAE government is determined to urge people to lower their dependence on conventional fuel and use public transport and eco-friendly vehicles as their daily commuting option in order to reduce the carbon footprint of the country. The carbon footprint will decrease automatically with more eco-friendly vehicles on the roads such as Hybrid and Electric Vehicles (EVs) as these vehicles don’t emit harmful gases that pollute the environment.
While using public transport can be an excellent choice to keep your monthly fuel budget in check, it is not a preferred choice for a number of motorists who prefer driving their own vehicle in the UAE. For such motorists, it can be an ideal choice to shift from their conventional vehicles to Hybrids or EVs if they seek a long-term solution to better manage their fuel expense. The government of the UAE is supporting this green mobility initiative and encouraging motorists to shift from their conventional vehicles to hybrids and EVs as it will help in improving the UAE’s air quality.
Why Should You Upgrade Your Vehicle to an EV?
EVs offer an eco-friendly commuting option as they don’t rely on combustion of fuel under the hood unlike the conventional petrol and diesel vehicles. Apart from their amazing utility as an eco-friendly alternative to combustion engine vehicles, EVs also reduce the monthly fuel expense to a bare minimum, which bears critical importance for motorists on a tight budget.
EVs are also available in all vehicle segments, which gives you a wide variety of options to choose from in your preferred vehicle segment. Additionally, the friendly government policies have made buying and owning an EV easier than ever before in the UAE. A number of incentives and benefits are being offered to electric car owners and buyers in the UAE to promote the sales of electric vehicles.
To read about all the incentives offered to electric car owners and buyers in the UAE, read our blog titled “New Incentive Program Encourages the Buying of Electric Vehicles in the UAE”.
Buying an EV can be a great decision in the long-term as it will give you more freedom to manage your monthly budget because fluctuating fuel prices will no more be a concern for you.
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.
