The price of petrol in the UAE has been lowered for September, while the price of diesel remains unchanged. This is the second straight month that petrol prices have decreased in the UAE. The new fuel prices will be effective from Sunday, September 1.
Petrol will cost AED 2.19 per litre, down from AED 2.21 in August. Diesel will remain at AED 2.36 per litre. The UAE’s Ministry of Energy announced the new fuel prices on Saturday evening. The ministry attributed the decrease in petrol prices to a decline in international crude oil prices. Brent crude futures, the international benchmark for crude oil prices, fell to $44.73 a barrel on Friday, down from $45.38 a barrel the previous day.
The UAE deregulated petrol prices in August 2015 and has been setting them on a monthly basis since then. Diesel prices were also deregulated in November 2015. The price of petrol in the UAE is still much lower than in most other countries. In neighbouring Saudi Arabia, petrol prices were increased by 20% in July, to SAR 2 per litre.
The UAE’s decision to keep diesel prices unchanged for September comes as a surprise, as many had expected a reduction in prices due to the decline in international crude oil prices.
The UAE’s fuel prices are still among the lowest in the world, despite the recent increases. The price of petrol in the UAE is still less than half of what it costs in Europe and North America. Diesel is also much cheaper in the UAE than in most other countries.
The UAE’s fuel prices are set to increase again in October, as the country implements a new excise tax on petrol and diesel. The excise tax will add AED 0.50 to the price of a litre of petrol, and AED 0.40 to the price of diesel. The new taxes are part of the UAE’s efforts to tackle its budget deficit, which is estimated to be around AED 18 billion this year.
The UAE has one of the world’s largest per capita carbon footprints, and the new taxes are expected to help reduce emissions. The UAE is also planning to introduce a carbon tax in the future.
The new taxes on petrol and diesel will come into effect from October 1. The UAE’s Minister of Energy, Suhail al-Mazroui, has said that the country is committed to reducing its dependence on oil and gas, and is working to diversify its economy. He said that the UAE is investing in renewable energy, and is also working on electric vehicles.
