UAE Reduces Fuel Prices for Third Consecutive Month in January 2024

In a bid to provide relief to consumers and boost economic stability, the Fuel Prices Monitoring Committee in the United Arab Emirates (UAE) has once again decided to decrease gasoline and diesel prices for the third consecutive month, effective January 1, 2024. This move is in alignment with the committee’s ongoing efforts to respond to global oil market dynamics and ensure a fair balance between consumer affordability and market stability.

The latest decision by the committee sees a reduction in prices ranging between 13 and 14 fils for gasoline and 19 fils for diesel per liter, compared to the rates observed in December 2023. Fuel distribution companies promptly announced the new prices, incorporating a 5% value-added tax, and the adjustments are expected to be implemented starting from the beginning of the new year.

For the month of January 2024, consumers can expect a noticeable decline in the cost of fuel. Specifically, the price of a liter of super gasoline “98” will decrease by 14 fils, settling at 2.82 dirhams compared to the December rate of 2.96 dirhams. Similarly, a liter of special gasoline “95” will experience a 14 fils reduction, dropping from 2.85 dirhams in December to 2.71 dirhams in January.

Furthermore, the price of a liter of E-Plus 91 gasoline is set to decrease by 13 fils, moving from 2.77 dirhams in December to 2.64 dirhams in January. Diesel prices will also see a significant drop of 19 fils per liter, decreasing from 3.19 dirhams in December to 3.0 dirhams in January. These adjustments come as part of the committee’s strategic approach to maintaining a delicate balance between consumer interests and market stability.

The Fuel Prices Monitoring Committee’s decision to consistently reduce fuel prices is not new. In December 2023, a similar move was made, with prices reduced by an amount ranging between 7 and 8 fils for gasoline and 23 fils for diesel per liter compared to November 2023 rates. The committee also approved reductions in November 2023, where gasoline prices were slashed by 41 fils and diesel prices by 15 fils per liter compared to October 2023 rates.

It’s important to note that the fuel price standards, approved by the Ministry of Energy, are determined on a monthly basis. These standards are influenced by the average global price of oil, accounting for fluctuations, and include the operating costs of distribution companies. The proactive approach of the UAE government in addressing the economic impact on consumers through regular adjustments in fuel prices reflects its commitment to maintaining economic stability and supporting the welfare of its citizens. As global oil markets continue to evolve, the UAE’s dynamic response ensures that consumers experience relief while also contributing to overall economic resilience.