UAE fuel price prediction for October 2024: Will the price of petrol decrease?
It’s that time of the month once again when we think about our next trip to the pump and whether it’s better to wait for the price of fuel to change.
UAE petrol and UAE diesel prices change monthly and are announced on the final day of every month by the United Arab Emirates federal government via its petroleum firm Emarat.
We do expect the summer months to decline by 1 percent in September and fell in June and July as well.
And we are optimistic that this trend will carry on into a next decline as we continue into the spooky season of Halloween in October.
UAE fuel: The current UAE petrol and UAE diesel prices
- Super 98: Dhs2.90 per litre
- Special 95: Dhs2.78 per litre
- E-Plus 91: Dhs2.71 per litre
- Diesel: Dhs2.78 per litre
The new rates will apply at the start of next month on Tuesday 1 October, 2024 .
Petrol prices have varied over time and so has the cost of a taxi ride in Dubai now averaging out at Dhs2.14 per km in the city. And with the national price of petrol set to change will that lead on to changing the rates for a taxi?
Since 2015, the UAE has revised petrol prices on a monthly basis in line with international prices.
Petrol prices had peaked in July 2022 at Dhs 4.63 per litre Super 98
In 2023, petrol prices peaked in October and came down in November, December, and January.
JANUARY 2024
- Super 98 petrol: Dh2.82 per litre
- Special 95 petrol: Dhs2.71 per litre
- E-plus 91petrol: Dhs2.64 per litre
- Diesel: Dhs3.00 per litre
FEBRUARY 2024
- Super 98 petrol: Dhs2.88 per litre
- Special 95 petrol: Dhs2.76 per litre per litre
- E-plus 91petrol: Dhs2.69 per litre
- Diesel: Dhs2.99 per litre
MARCH 2024
- Super 98 petrol: Dhs3.03 per litre.
- Special 95 petrol: Dhs2.92 per litre.
- E-plus 91petrol: Dhs2.85 per litre.
- Diesel: Dhs3.16 per litre.
APRIL 2024
- Super 98 petrol: Dhs3.15 per litre.
- Special 95 petrol: Dhs3.03 per litre
- E-plus 91petrol: Dhs2.96 per litre
- Diesel: Dhs3.09 per litre
MAY 2024
- Super 98 petrol: Dhs3.34 per litre
- Special 95 petrol: Dhs3.22 per litre
- E-plus 91petrol: Dhs3.15 per litre
- Diesel: Dhs3.07 per litre
JUNE 2024
- Super 98 petrol: Dhs3.14 per litre
- Special 95 petrol: Dhs3.02 per litre
- E-plus 91petrol: Dhs2.95 per litre
- Diesel: Dhs2.88 per litre
JULY 2024
- Super 98 petrol: Dhs2.99 per litre
- Special 95 petrol: Dhs2.88 per litre
- E-plus 91petrol: Dhs2.80 per litre
- Diesel: Dhs2.89 per litre
AUGUST 2024
- Super 98: Dhs3.05 per litre
- Special 95: Dhs2.93 per litre
- E-Plus 91: Dhs2.86 per litre
- Diesel: Dhs2.95 per litre
SEPTEMBER 2024
- Super 98: Dhs2.90 per litre
- Special 95: Dhs2.78 per litre
- E-Plus 91: Dhs2.71 per litre
- Diesel: Dhs2.78 per litre
How do global crude oil prices impact UAE fuel prices
Global oil prices significantly affect the fuel pricing in the UAE because the deregulated price system introduced there in 2015 made the average global oil prices adjusted by the country incorporate the expense of cost distribution into those prices; thus, fluctuations in crude oil will have a direct cause-and-effect effect on the local fuel prices, which will increase locally when the prices are rising around the world and decrease otherwise. This would ensure that fuel prices in the UAE are aligned with those reflected in the international market and, therefore, would also be vulnerable to geopolitical developments and economic policies which may influence crude oil supply and demand.
How has the UAE’s fuel price deregulation affected consumer behavior
The deregulation of fuel prices in the UAE since August 2015 has been significantly responsible for changing behavior among consumers.
Increased Awareness: Consumers are becoming more aware of the fuel cost and so pick up fuel-effective cars along with visiting public transportation to save costs.
Shift in Consumption Patterns: Deregulation promotes decreasing total consumption because high prices provoke consumers to change their driving patterns.
Economic Impact: The companies responded to the change in the economy by streamlining and refining their logistics and ways of doing business to become quicker regarding the change of the economy toward efficiency with “sustainability-feasible” solutions due to the increasing fuel costs.
In general, deregulation has promoted a more market-oriented approach to fuel consumption in the UAE.
Are there any long-term changes in consumer spending habits due to higher fuel costs
Higher Fuel Prices Have Caused Significant Long-Run Changes in Consumer Expenditure Composition.
More Out-of-Wallet Spending: Consumers allocate a higher percent of their income to fuel, thereby lowering discretionary spending on other less-sensitive goods and services
More Fuel-Sipping Vehicles: Higher prices make smaller, more fuel-sipping vehicles more appealing as consumers buy these to counteract the price impact in the automobile industry.
More Commutes by Public Transportation: Higher Fuel Prices Tend to Increase the Number of Passengers Using Public Transportation: Consumers Search for Alternative Cheaper Options.
Online Shopping Goes Up: With the increasing fuel price, people prefer online shopping instead of traveling for visiting physical stores.
In an international scenario, for a little longer time period if the prices of fuel are too high, it might drastically change the consumption pattern of consumers all over the world.
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How do higher fuel prices impact the airline industry
High prices of oil entail several effects on the airline business since it touches all the above aspects.
Rising Operating Costs: Fuel is the biggest cost of operation for any airline, accounting to approximately 30-40% of it. That would consequently mean the rising costs set in such a trend that airlines would have to absorb it themselves by cutting down their margins or pass on to the consumer in terms of increased air ticket prices.
Rate Hike: Several airlines raise their tickets by a rise of about 14% to be able to afford the rate of the hike in its prices for fuel as estimated to rise.
Profitability Considerations: Another factor that impacts profitability is the rise in fuel prices since consumers might become less demanding with increases in traveling costs. For instance, Southwest and Alaska Airlines have scaled down their revenue forecasts following higher fuel prices.
There are several ways airlines would cut back on cost in other areas; other alternatives would include grounding the unprofitable flights or routing the flights to be most cost-effective.
Finally it is the price of fuel, a factor that spirals out of hand and puts airports on the balancing act between profitability and affordability in flying.
How do fuel price increases impact the overall economy beyond the airline industry
Increased fuel prices have an impact on the aggregate economy beyond the aviation industry:
Consumer Spending: Higher fuel costs reduce disposable income thus people spend less on discretionary goods and services. Thereby, they may subsequently reduce retail sales and growth.
Inflationary pressure. High transportation costs are passed down as higher prices of goods, increasing the fuel bill and, in turn, inflation.
Public Transportation Demand Fuel price increases usually trigger high ridership rates in public transportation because consumers may try to find more affordable ways of mobility, thereby making a play on transit budgeting and operations.
Business Operations: Companies that are logistic dependent operate at a premium cost level, and hence they cannot afford to hire more or invest in any expansionary measures. Such business operations will hamper the growth of the economy and hence also limit the rise in employment levels.
Thus, this does not only ripple through consumer circles but can affect other drivers across the economy.