New Fuel Prices Revealed

UAE fuel price goes up 42 fils for Special, diesel nosedives to AED2.90
Imthishan Giado

Fuel Price Aug 2015

Following last week’s announcement the UAE’s Ministry of Energy has revealed the prices of fuel for the month of August 2015, marking the first time in UAE history that fuel has been deregulated.

The price of the most commonly-used 95-octane ‘Special’ has increased 42 fils to AED2.14 (from AED1.72) while the premium ‘Super’ 98-Octane has seen a similar rise of 24%  to AED2.25 (from AED1.83).

Abu Dhabi offers a lower octane fuel known as ‘E-Plus 91’. This will continue to be offered, at AED 2.07 (formerly AED1.61) making it the cheapest petrol found on sale today. Diesel prices have dropped from AED.235 to AED 2.05, making it cheaper than gasoline.

Commenting on the move by the UAE to push the motoring population to more efficient vehicles, a Fiat Chrysler Automobile (FCA) spokesman said: “It’s logical to assume that some drivers may well start looking at alternative methods of transport and may start to become more aware of the cost-benefits of more fuel-efficient vehicles. For many years now, FCA Powertrain Technologies has offered a line-up that’s well positioned to take advantage of any shift in consumer vehicle purchase patterns that may result from this change in fuel pricing strategy – our expanded range includes smaller, downsized fuel-efficient powertrains such as the 170hp Multi Air 1.4-litre and 240hp 1.8-litre, all fully made in aluminium with scavenging technology developed in collaboration with Ferrari.

“The V6 Pentastar 3.6-litre already complies with greenhouse (GHG) emission regulations and our V8 HEMI engines feature the exclusive Multi-Displacement System – a highly advanced system seamlessly alternates between smooth, high fuel economy four-cylinder mode when less power is needed, and V8 mode when more power is demanded,” he continued.

Volkswagen Middle East Managing Director Thomas Milz believed that the number of V8 engines on the roads shows how little fuel consumption has mattered to UAE drivers – until now.

“In the short term, long-range commuters may face the greatest impact from the pricing realignment,” he said. “These customers may find themselves seeking alternative options or models for their commute  to what they would traditionally have preferred to drive. From a medium to long-term perspective, I imagine that we may see a higher penetration of four-cylinder engines with less displacement.”

In Europe, diesel vehicles enjoy a definitive advantage in the marketplace. Could they enjoy similar success in the Gulf? Milz says the possibility exists, though he wouldn’t be drawn into further speculation. “There is an opportunity for us to perhaps see diesel engines in this market if the price disparity between diesel and petrol were to become similar to European markets.”

“In the UAE, we have lagged somewhat behind in introducing public transport systems – hence why travelling by car has traditionally been the preferred mode for most. Taking into consideration variables exclusive to the UAE such as the harsh climate has perhaps resulted in a reluctance from commuters to adopt public transport. The recent deregulation may cause consumers to reconsider their transport choices, ” he added.

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The original fuel price announcement

 

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