The Ministry of Energy and Industry has announced fuel prices for the month of July in the UAE. To the delight of motorists on a tight budget, the fuel prices have been decreased for the first time in five months. This comes as a positive development for motorists on a tight budget who will find it easier to manage their fuel expense during the month of July. The new fuel prices are inclusive of the Value Added Tax (VAT), which was implemented on commercial and business activities at the start of 2018.
A significant decrease has been observed in fuel prices for July, which will bring the much-needed relief to motorists on a tight budget. However, fuel prices are expected to fluctuate in the coming months, which is why motorists should adopt fuel-saving practices to manage their fuel expense effectively. Motorists should also consider switching from their combustion engine vehicles to Hybrids and Electric Vehicles (EVs) to reduce their dependence on conventional fuel.
New Fuel Prices in the UAE
The Ministry of Energy and Industry in the UAE has announced a significant decrease in fuel prices for the month of July. Fuel prices were decreased in February 2019 last time, after which the prices for all types of fuel continued to increase for four consecutive months. For the month of July, the prices for all types of fuel including diesel have been decreased in the UAE.
⛽ July’s fuel prices as per the #UAE fuel committee are out. Check them below. #InspiringEnergy
إليكم أسعار الوقود ⛽ لشهر يوليو وفقاً لما ذكرته لجنة متابعة أسعار الوقود في الإمارات. #طاقة_مُلهمة pic.twitter.com/Qy2WcMoUnz
— ENOC (@enoc_official) June 27, 2019
Given below are the new fuel prices by fuel-type:
- The price of Super 98 petrol has been decreased from AED 2.53/litre in June to AED 2.30/litre in July.
- The price of Special 95 has been dropped to AED 2.18/litre for the month of July from its previous price of AED 2.42/litre.
- The price of Diesel has been decreased by 21 fils from the month of June and its new price is AED 2.35/litre.
As mentioned previously, these prices are inclusive of the 5% Value Added Tax. Every month, irrespective of the increase or decrease in prices, 5% VAT is added to the fuel prices, which is one of the major reasons why fuel prices have increased massively since the start of 2018.
Reasons Behind Fluctuations Observed in Fuel Prices
Fuel prices have been fluctuating in the UAE for more than three years and there are several reasons behind these fluctuations. A strategy for liberalization of fuel prices was implemented in August 2015 after which, fuel prices move with the market and this is a major reason behind fluctuations observed in prices.
Fuel prices in the UAE are linked with the price of Brent (Global Benchmark for Crude Oil) in the international market, which means any rise or fall in the Brent price can directly affect the fuel prices in the UAE. Another factor that can be associated as a major reason behind fluctuations observed in prices is the transportation cost of fuel. The Ministry of Energy and Industry takes into consideration the latest Brent price and current transportation cost of fuel while setting fuel prices for the coming month in the UAE.
How Motorists on a Tight Budget Can Reduce their Fuel Expense?
Managing fuel expense can be difficult for motorists on a tight budget since fuel prices have been fluctuating in the UAE over the last few years. Complying with fuel-saving practices can be a good way to reduce fuel expense, however, motorists can figure out a long-term solution for managing fuel expense by bringing a much-needed change to their mindset. It can be ideal for motorists in the UAE to switch from their combustion engine vehicles to hybrids or Electric Vehicles (EVs) in order to put a cap on their fuel expense.
Hybrid vehicles use a secondary source (Electric, Solar, Hydrogen) to generate power in combination with the combustion engine and reduce the need for conventional fuel. On the other hand, EVs don’t need conventional fuel at all and buying these vehicles can help motorists get rid of their financial worries related to fluctuations observed in fuel prices.
The UAE government is also actively involved in promoting the sales of EVs in the UAE to reduce the carbon footprint and to improve the air quality of the country. Several discounts and other incentives are offered for purchasing EVs in the UAE while EV owners can also enjoy some amazing benefits. Fuel prices are expected to fluctuate in the coming months as well and buying an EV can help motorists in managing their commuting requirements within their budget.
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