HIGHER JANUARY FUEL PRICES INCLUSIVE OF VALUE ADDED TAX
DUBAI — The UAE’s Ministry of Energy on Wednesday announced higher fuel prices for January, inclusive of the Value-Added Tax (VAT).
From January 1, 98 unleaded petrol will cost Dh2.24 per litre as compared to Dh2.15 this month, an increase of nine fils, or 4.1 per cent. While 95 unleaded petrol will cost eight fils more per litre, or 3.9 per cent more, at Dh2.12, 91
unleaded petrol will rise by eight fils from Dh1.97 to Dh2.05.
Diesel has been raised to Dh2.33, an increase of 13 fils.
The January prices are close to the highest since the UAE started deregulating energy prices in August 2015, the first month after the deregulation, when 98 unleaded petrol and 95 unleaded petrol were priced at Dh2.25 and Dh2.14 per litre, respectively. The UAE will levy five per cent VAT from 7am from January 1 on a number of goods and services, including petrol and diesel prices. This will result in a marginal increase in inflation in the country, say analysts.
The increase in fuel price is also in line with the rise in global prices in December. Brent crude futures on Wednesday dropped to $66.27 a barrel, down 1.15 per cent, at 5.20pm UAE time after breaking through $67 for the first time since May 2015 the previous day.
According to data released by the US Energy Information Administration, the glut in the supply witnessed in 2015 came into balance in 2016 but it has shown a slight supply deficit this year.