Rejoice! After a relentless few months of climbing, fuel prices in the UAE are set to drop a little in March.
Okay, we all accept that fuel prices went up in January because of value-added tax (VAT), but they also jumped a little in February, too, making car travel quite a bit more expensive for plenty of people.
Anyway, fuel prices are set to drop slightly at the end of this week. For Super 98, you can now expect to pay AED 2.33 per litre, down 1.2% from February’s price of AED 2.36. Special 95 has dropped by 1.3% – from AED 2.25 per litre to AED 2.22 per litre. And diesel is down 2.4%, going from AED 2.49 per litre in February to AED 2.43 per litre in March.
So the price drops aren’t exactly huge. Overall, fuel prices are around 33% higher than they were at their low in July last year.
So why are UAE fuel prices so much higher now? Well, apart from 5% VAT being added to the cost of fuel, it all comes down to the cost of crude oil. Fuel prices are tied to the international oil markets, so if the cost of crude oil goes up, so too does the cost of fuel.
Right now, crude is hovering around the $66-per-barrel mark. That’s way higher than last July, when crude oil cost around $50 per barrel.