UAE petrol prices to rise more than 10 per cent in April
The cost of filling up your car with petrol is set to rise on Friday for the first time in more than half a year.
The plummeting price of oil had resulted in the Government cutting fuel prices almost every month since last August.
However, oil prices have rallied this month with a barrel of Brent crude trading on Monday at US$40.55, after finishing February at $35.97 a barrel.
The resulting increases of a litre of fuel for April, which were announced by the Minister of Energy, are all in double-digit percentages.
Super 98 is to cost Dh1.62 a litre – a rise of 10.2 per cent – while Special 95 will be Dh1.51 a litre, a rise of 11 per cent. E Plus 91 will cost motorists 11.6 per cent more at Dh1.44 a litre, and diesel will move up 11.4 per cent to Dh1.56 a litre.
Pierre-Louis Brenac, managing partner and head of the Middle East of consultancy Sia Partners, said that the increases were small.
“All across the GCC, governments are trying to help citizens with rising costs,” he said, pointing to the recent news that mobile operators were slashing roaming rates.
“It’s a decision to ensure that businesses and people can thrive all across the region.”
The prices for April will still be lower than the subsidised rates from last August.
For one family business in Dubai, the impact should be slight.
Benton International supplies skilled workers such as plumbers and masons for various jobs around the emirate.
Benton’s sales manager Kevin Bernard Raj said that the company’s 2010 Toyota Fortuner was filled every two days, with the cost working out to about Dh300 to Dh350 a week.
“I’m paying a flat rate of Dh100 now for my SUV to be filled so it will impact somewhat, but 10 per cent is a manageable difference,” he said.
One UAE disc jockey put a positive spin on the new prices.
“When petrol was lower, people lost their jobs, which affected their spending,” reasoned Abdallah Seleem, 29, of Egypt.
For Mr Seleem, his 2008 Mitsubishi Pajero is his “right hand”. He fills up the tank every two to three days at about Dh70 a time. “I drive almost every day, even to go to the grocery store, so this means my expenses will increase by 10 per cent,” he said.
“I have to do these trips anyway, so I guess I will just spend more.”
And although this will put more pressure on his wallet, the DJ remained upbeat.
“I hope this means the economy is on its way up again. Hopefully things will get better with time.”
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Updated: March 28, 2016 04:00 AM