The Ministry of Energy and Industry has announced fuel prices for the month of April in the UAE. According to the announcement, the fuel prices have been increased significantly for the month of April, which will add to the financial worries of motorists on a tight budget. It is the second consecutive increase in prices as the fuel prices were also increased last month.
Fuel prices have been fluctuating in the UAE since the implementation of the liberalization strategy. This strategy was implemented in August 2015 and since then, the fuel prices move with the market and the fluctuations in the price of Brent (Global Benchmark for Crude Oil) affect fuel prices in the UAE the most.
New Fuel Prices in the UAE
Fuel prices have been increased for the second consecutive month, which means refilling the fuel tanks will become costlier for motorists during the month of April. The increase in fuel prices has been attributed to fluctuations observed in the price of Brent in the international market. According to the announcement of the Ministry of Energy and Industry, the fuel prices have been increased for all types of fuel.
The fuel prices for the month of April are given below:
- The price of diesel is up by 8 fils from its March price and it will be sold at AED 2.49/litre during the month of April.
- The price of Super 98 petrol has recorded a massive hike of 19 fils and it will be available at AED 2.23/litre during the month of April.
- Special 95 has also been increased by 19 fils and its new price is AED 2.11/litre.
The fuel ⛽ prices for the month of April as announced by the #UAE Fuel Price Committee are out, check them below. #InspiringEnergy pic.twitter.com/g06yxKhXez
— ENOC (@enoc_official) March 28, 2019
Factors that Affect Fuel Prices in the UAE
There are some major factors that affect fuel prices in the UAE, one of which is the addition of 5% Value Added Tax (VAT) to every month’s prices. Value Added Tax was implemented in the UAE for the first time in January 2018 and since then, all commercial and business activities have been subject to VAT implementation.
The most significant factor that affects fuel prices in the UAE is the price of Brent in the international market. Brent is the global benchmark of crude oil and any rise or fall in the price of Brent directly affects the fuel prices in the UAE.
The other factors that affect fuel prices in the UAE include transportation costs of fuel and Platts Benchmarks. Platts is an international organization that provides information about global oil prices and industry trends. The Platts benchmarks are taken into consideration while setting new fuel prices in the UAE.
How Motorists can manage their Fuel Expense in the UAE?
Managing fuel expense efficiently has been a big challenge for motorists in the UAE since the liberalization of fuel prices in 2015. It has become extremely difficult for motorists on a tight budget to keep their monthly fuel expense in check due to fluctuations observed in fuel prices. To overcome the financial worries caused by fluctuating fuel prices, it is important for motorists to adopt some important fuel-saving practices.
Some notable fuel-saving practices that motorists can follow are given below:
- Avoid aggressive driving as it can increase fuel consumption.
- Manage your daily errands in a single long trip and avoid frequent road trips.
- Maintain your vehicle according to the instructions mentioned in the car owner’s manual as a well-maintained vehicle offers better fuel efficiency over a long period of time.
- Use public transport frequently to keep your fuel expense in check.
While these fuel-saving practices can be useful for limiting the fuel expense, motorists should also consider switching from their traditional combustion engine vehicles to Electric Vehicles (EVs). EVs generate power from electric batteries and don’t need conventional fuel at all so they offer a long-term solution to motorists to get rid of their worries regarding fluctuating fuel prices. EVs are also eco-friendly vehicles and ensure zero emission, which is a reason why the Government of the UAE is also promoting the use of these vehicles. The UAE government offers several incentives and benefits to EV car owners and buyers in the UAE.
Fuel prices are expected to fluctuate in the coming months as well, which adds to the importance of figuring out a method to reduce fuel expense in the long run for motorists on a tight budget.
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