Key Highlights

• Until 2015, the UAE government heavily subsidized fuel prices to maintain stability.

• In September 2015, fuel prices were liberalized to align with global oil price changes.

• The Fuel Price Committee is now responsible for deciding fuel prices in the UAE.

• Expectations of ongoing changes in fuel prices over the next few months.

As of February 2024, the cost of EPlus 91 stands at AED 2.69, Special 95 is priced at AED 2.76, and Super 98 is set at AED 2.88 per liter for petrol in the UAE. Diesel is currently priced at AED 2.99 per liter. These rates, effective from February 1, 2024, are anticipated to stay constant throughout the month, with monthly adjustments being a customary practice. The subsequent modification in fuel prices is expected in March 2024.

In January 2024, petrol prices experienced a reduction of up to AED 0.14, and diesel prices saw a decline of AED 0.19. However, in February 2024, there was a marginal rise of AED 0.06 in petrol prices, while diesel prices decreased by AED 0.01. This marks the conclusion of the consecutive monthly decline in petrol prices.

Fuel Prices in the UAE Over The Past Three Months

The cost of filling up your car's fuel tank remains consistent with the rates from the previous month. The difference in expenditure for a full tank ranges between AED 4 and AED 30, depending on the tank size. This reduction in prices also contributes to a notable decrease in per-kilometer running expenses.

Before 2015, the government highly subsidized fuel prices, which protected prices from fluctuating. However, in September 2015, it was liberalized to align with global oil prices. The Fuel Price Committee decides fuel prices in the UAE and we can expect more changes over the next few months.

Verdict

The shift from heavy government subsidies to the liberalization of fuel prices in September 2015 marked a significant change in the UAE's approach to pricing. With the Fuel Price Committee now overseeing these determinations, the country anticipates ongoing adjustments in response to global oil price dynamics. This transition reflects a more market-oriented approach, emphasizing the need for flexibility in the face of changing economic conditions.

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