The Fuel Price Committee has announced fuel prices for January 2020 in the UAE. According to the announcement, the prices for all types of fuel have been kept unchanged. This comes as a positive development for motorists on a tight budget who have been under serious financial pressure to manage their fuel expense. Fuel prices have been fluctuating in the UAE since August 2015, which has increased financial worries for motorists on a tight budget.
The liberalization strategy for fuel prices was implemented in August 2015, after which fuel prices in the UAE move with the market. As a result of the implementation of this strategy, the fluctuations observed in global crude oil prices directly affect the fuel prices in the UAE. Fuel prices are announced at the end of every month and the new fuel prices are always inclusive of the 5% Value Added Tax (VAT).
Fuel Prices for January 2020 in the UAE
Prices for all types of fuel have been announced by the Fuel Price Committee in the UAE. Fuel prices have not been changed from the last month, which will bring some relief to motorists on a tight budget.
Fuel prices for January 2020 are given below:
- The price of Super 98 has been fixed at AED 2.24/litre.
- The price of Special 95 has been kept unchanged from its last month’s price of AED 2.12/litre.
- The price of diesel has not been revised from its last month’s price of AED 2.38/litre.
Fuel prices have been fluctuating in the UAE for more than four years, which has made it extremely difficult for motorists to set a monthly fuel budget. Any rise or fall in the price of Brent (Global Benchmark for Crude Oil) can have a direct impact on the fuel prices in the UAE, which means fuel price trends in the UAE cannot be predicted ahead of time. This is the reason why motorists must always be prepared to manage their fuel expense in line with the fluctuations observed in fuel prices.
January’s fuel ⛽ prices as per the #UAE fuel committee are out. Check them below. #InspiringEnergy
إليكم أسعار الوقود ⛽ لشهر يناير وفقاً لما ذكرته لجنة متابعة أسعار الوقود في الإمارات. #طاقة_مُلهمة pic.twitter.com/IDGGpTN7CQ
— ENOC (@enoc_official) December 26, 2019
Which Factors Impact Fuel Prices in the UAE?
It is important for motorists to know which factors impact fuel prices in the UAE. As mentioned earlier, the price of Brent directly affects the fuel prices in the UAE. Other factors that also impact the fuel prices in the UAE are transportation cost of fuel and Platts Benchmarks. Platts is an international organization that provides information about the prices of crude oil and gasoline products. The Ministry of Energy and Industry in the UAE takes into consideration the latest Platts Benchmarks while setting new fuel prices.
How to Manage Fuel Expense in the UAE?
Motorists on a tight budget must know how they can manage their fuel expense in the UAE. The best way to put a cap on the fuel expense is by switching from combustion engine vehicles to Electric Vehicles (EVs).
Many new fuel-efficient combustion engine vehicles have also been launched in the UAE, which offer better fuel efficiency and can help motorists in limiting their fuel expense. However, switching from a combustion engine to an EV can be ideal for motorists on a tight budget as EVs don’t need conventional fuel at all. These vehicles generate power from electric batteries; hence motorists will be completely relieved from their financial worries regarding fluctuating fuel prices if they switch from combustion engine vehicles to EVs.
Electric vehicles ensure zero emissions and are considered environment-friendly vehicles. The authorities in the UAE are keen on increasing the sales of EVs as part of their efforts to improve the air quality of the country. For this purpose, an incentive programme has been launched by the authorities, which offers numerous benefits to EV buyers and owners. This is how switching from combustion engine vehicles to EVs can make life a lot easier for motorists in the long-term.
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