The United Arab Emirates is poised to reveal new petrol prices for January 2025, following what has been described as quite the rollercoaster year for fuel costs. After witnessing significant drops last month, the nation is awaiting updates on the fuel costs which have seen various adjustments throughout 2024.
December was particularly favorable for motorists, establishing itself as the month with the lowest petrol prices of the year. Motorists enjoyed reduced rates for Super 98, Special 95, and E-Plus 91 petrol categories, alongside slight adjustments for diesel. The prices for these fuel categories have dropped considerably compared to the start of 2024.
For the record, back in January 2024, E-Plus 91 was priced at AED 2.64 per litre, whereas diesel stood at AED 3 per litre. Fast forward to December, and E-Plus 91 is now priced at AED 2.43 per litre, indicating quite the drop. Similarly, Super 98 and Special 95 have dropped from AED 2.50 and AED 2.71 at the beginning of the year to AED 2.61 and AED 2.63 respectively. Comparatively, diesel prices increased just marginally from AED 2.67 to AED 2.68 litre, showing more volatility among petrol costs.
The pricing changes come from the United Arab Emirates' monthly assessment through its federal government, via its petroleum firm Emarat. This trend has been shaped by fluctuated global oil prices, particularly after controls were lifted back in March 2021, allowing market forces to dictate fuel prices.
Annually, significant fluctuations have defined fuel costs since 2024 began. Reports noted how petrol prices peaked mid-year, particularly around May. Popular sentiments lead consumers to hope for another drop heading from December to January. This anticipation is bolstered by historical data and frequent price adjustments by the Fuel Price Committee, which collaborates each month to establish revised rates.
The upcoming price changes on January 1, 2025, will once again reflect the UAE's commitment to aligning their local prices with the shifting global oil market. Over the last few campaigns, the federal government has exhibited its intent to stimulate public transport usage and embrace alternative fuel options by normalizing gasoline expenditure trends.
Meanwhile, motorists have expressed relief as the fluctuated prices provide reprieve after often spending much higher earlier last year. They are finding it particularly advantageous heading toward the new year and are optimistic about continued price adjustments benefiting consumers.
Specifically, diesel prices indicate more stabilization relative to petrol costs, which signify areas of volatility through the year. Observing the recent monthly announcements, Super 98 petrol was priced at AED 2.61 per litre, Special 95 at AED 2.50, and E-Plus at AED 2.43. Meanwhile, diesel has just slightly lowered to AED 2.68 per litre.
The year 2024 encapsulated price peaks reaching until AED 3.34 per litre in certain months, creating substantial concern and adjustments as consumers averaged rising expenditures. This oscillation led to greater scrutiny over the government’s plans to maintain reasonable rates.
Since implementing fuel price liberalization back in 2015, the UAE aligned its local fuel prices with global benchmarks to cope with the pandemic’s economic impact effectively. Such adjustments appear to be more permanent trends shaped by execution and market responsiveness.
So, as January arrives and this new pricing period begins, all eyes will remain fixed on the UAE fuel price committee’s decisions: Will they sustain this downward trend, or will consumers witness fluctuations again? The government remains hopeful, with persistent objectives at the forefront advocating for greater reliance on transport alternatives and reduced dependency on traditional petrol.
The introduction of the 2025 petrol price adjustments marks yet another chapter for the UAE's approach to fuel pricing, one reflecting dynamic global markets and the government's continuous adaptations to meet citizens' needs for practical and economic fuel solutions.
