It’s 2018, and that means that value-added tax (VAT) now applies to pretty much everything in the UAE – including petrol.
So when the UAE’s Ministry of Energy published its list of updated fuel prices for January, there was quite an increase on December’s rates. Not only has the rising cost of oil slightly put prices up in general, but now 5% VAT applies, too.
As a result, this month, Super 98 petrol will go for AED 2.24 per litre – up from AED 2.15 per litre in December and AED 2.03 in November. Meanwhile, 95 Special will cost AED 2.12 per litre this month, up from AED 2.04 in December.
In fact, even the cheapest fuel – 91 E-Plus – is now above the AED 2 mark. In January, E-Plus will set you back AED 2.05 per litre, up from AED 1.97 in December. Diesel, meanwhile, is the most expensive fuel in January – costing AED 2.33 per litre, up from AED 2.20 in December.
Happily, if you’re worried about the rising cost of fuel, the UAE government has announced that the cost of public transport won’t have 5% VAT attached to it. For a full list of what will be taxed, check out our comprehensive VAT guide.