The UAE is one of the world’s largest oil producers, so its residents enjoy an abundant oil supply at one of the lowest rates. Compared to other GCC countries, the Fuel price in UAE is higher, but it is still low when compared globally.
In this blog, Burj Diary will look at the latest oil prices in the UAE, how they are calculated, the different grades of oil used in the country, and which is better for you.
Fuel Price in UAE
All the emirates that make up the UAE adopted a unified oil price. Prices are determined every month and remain applicable until the month ends. The following are the latest prices of oil per liter in the UAE that are in effect from February 1, 2024.
| Fuel Type | Price per liter (AED) |
|---|---|
| Super 98 Petrol | 2.88 |
| Super 95 Petrol | 2.76 |
| Eplus 91 Petrol | 2.69 |
| Diesel Petrol | 2.99 |
How Oil Price in UAE is Determined
The UAE’s oil pricing mechanism is centralized and follows a set pattern. The current mechanism has been in practice since 2015 and is determined by the Retail Pricing Committee, headed by the Ministry of Energy, and by the Retail Pricing Regulations.
At the end of each month, the Retail Pricing Committee refers to the oil prices calculated by S&P Global Platts and uses it as a benchmark to arrive at oil prices for a particular month. It adds operational, transportation, and other costs (retailers’ profit margins, for example) to these prices and announces the new prices for implementation across the country.
The Energy Ministry maintains the government’s strategic positioning, the need to diversify income sources for the country, the current state of the economy, and most of all, competitiveness while determining oil prices so that it remains viable, just, and fair.
Who is S&P Global Platts?
Since the UAE Energy Ministry uses Platts’ oil price as a reference point to determine its oil price, the question arises: who is this organization, and what does it do? Platts has been a prestigious source of price assessment for oil & its related products and other commodities for over a century. It has credible sources from global wholesale markets to calculate prices and has developed an impeccable reputation over the years.
This benchmarking helps maintain a stable price in the oil market and, discourages competition and price hedging, and protects consumer rights.
Different Fuel Types in The UAE
Earlier in the blog, we referred to the different oil prices UAE according to their grade or type. Let’s look at these oil types and understand their differences to know which is better for your car. These fuel types are similar in composition and kind (except for diesel); the main difference is the octane level in each oil type.
Super 98:
It is the most expensive type of gasoline because it contains the highest octane level. The octane rate here is 98 or more. This type of fuel is generally used for high-performance or luxury vehicles. Being the most premium form of gasoline, it has minimal impurities that can damage your car’s engine. It prolongs the life of your car’s engine and is favored by discerning vehicle owners who want the best for their cars.
Special 95:
It comes next to Super 98 with an octane rate of 91. It is also a high-grade gasoline, but its price is less than the Super 98 and it is used in medium-compression engines. It is also low in impurities and is generally considered a safe bet for most cars.
EPlus 91:
It is the most popular and widely used fuel type, with an octane rate of 91. It is extensively used in mid-range cars and low-compression engines. Its price is lower than the above two categories, adding to its popularity. The low price doesn’t mean it is also a low-quality oil; it conforms to all the safety and environmental standards for oils and is considered safe for most cars.
Diesel:
Diesel is a popular fuel choice for buses, trucks, vans, lorries, construction & earth-moving machinery. It has varied industrial applications, too, and is used to run many machines. Its thick texture is ideal for moderate-speed vehicles that draw heavy loads. It is also utilized in some passenger cars, although its usage in vehicles is decreasing. Upon burning, it produces more nitrogen oxide than other oil types, and research and experiments are underway to make it more eco-friendly.
Which Fuel Type is Right for Your Car?
Now that you have understood different fuel types, the question arises: which is suitable for your car? Diesel cannot be considered in the equation because diesel-fired engines run only on diesel, but for others, we can give the following generic guidelines;
- Refer to your car manufacturer’s guidelines
- Consider the car and engine type and any specific octane requirements
- Environmental impact
- Car emission regulations in your area
- Cost of the gasoline type
Factors That Impact Fuel Price UAE
As a major global oil producer, why can’t the UAE adopt a uniform oil price for longer? Why does it have to fix a new price every month? These are valid questions, and we will address them here so you know what factors impact oil prices in the UAE and elsewhere.
The oil supply & demand and price are heavily influenced by OPEC, the Organization of Petroleum Exporting Countries, of which the UAE is a member. It must regulate the oil supply according to OPEC’s directives
- The global demand also affects the oil price; if the demand contracts, the price rises
- Natural disasters like tsunamis, earthquakes, floods, and the like also affect oil prices
- Pandemics can also affect oil prices. It hit zero dollars per barrel during the height of Covid-19
Geo-political events like wars, trade wards, and political instability among oil-producing countries and their buyers also affect oil prices
Local taxes, interest rates, and global economics also dictate oil prices
Oil
Despite introducing several alternative fuel sources, oil remains the primary fuel source for humans. It powers everything from cars to factories, power stations, and more. It is, therefore, regarded as a highly sought-after commodity, and those who possess it are reaping the benefits.
Fortunately, the UAE is among those countries with vast oil reserves, and it has used oil to generate wealth and develop its economy. This blog has explained different aspects of fuel price in UAE, how it is calculated, and the different fuel grades. We hope it will benefit you.
FAQs
Q: Are there any differences between the petrol sold at ECNOC or ADNOC petrol stations?
A: No, the price remains unchanged for all the petrol pumps selling. There is no difference based on brand, region, availability, or other reasons.
Q: Can the oil price change during the month in the UAE?
A: The price is determined for a month and does not change. It remains valid for a month.
Q: Which region has the most oil in the UAE?
A: Abu Dhabi holds 96% of the total reserves in the UAE. Incidentally, they are the sixth largest oil reserves in the world.
Q: Where can I get the latest fuel price in UAE?
A: Once in effect, they are advertised by the government through websites, newspapers, electric and social media.
Q: Are any discounts or loyalty programs available for fuel customers in the UAE?
A: They are not available on the government level, but some petrol stations and oil companies offer them.
Q: Are there any environmental regulations for fuel in the UAE?
A: You must use fuel that complies with a laid-down quality standard and acceptable emission levels.
Q: Any tips for fuel saving in my car?
A: Drive carefully and moderately. Get your car’s engine regularly tuned and replace faulty parts. Never use low-quality fuel, and always change your engine oil on time.
Conclusion
The second richest Middle Eastern country, the UAE has among some of the lowest prices for oil and gas in comparison with other countries. With one of the leading positions amongst the world’s largest producers, vast volumes are supplied to the local population since it is a consumption state. Though UAE oil prices are costlier as compared to certain other GCC countries, they compete well on the international market.
In this blog by Burj Diary, we take a closer look at UAE oil prices that came from the ground and how they are fixed mostly of what types have its own specialty in cars or vehicles. Additionally, we took a closer look at the fuel prices drivers will be facing and examined which fuels are sold by what percentage of vehicles in Australia.
Explaining how oil prices in the UAE are calculated, with contributions from the Retail Pricing Committee and S&P Global Platts makes it easier to comprehend why they adjust monthly. You can make a more concerted effort in choosing which type of fuel is the best for your car by familiarizing yourself with the different fuel grades — Super 98, Special 95, EPlus 91, and Diesel so that you spend less to have maximum service.
Oil is still a critical commodity powering many industries despite the worldwide pivot to other energy resources. Due to its huge oil reserves, the UAE has been able to use this in a way that can bite hard. By knowing how to stay attuned with the factors driving fuel prices and by also following essential best practices on car care, residents will be able to make the most of their advantages in the UAE’s oil market.
