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Exploring the UAE Fuel Trading Market

Date:25-01-2023 | By:

The United Arab Emirates fuel station market is expected to register a CAGR of 2.3% during the forecast period (2022-2027). Refined product production is predicted to increase to 1,165.2 thousand barrels per day by 2027, up from 949.4 thousand barrels per day in 2021. 

During the forecast period, major factors such as increased acceptance of the compact fuel station concept, expansion of existing fuel station infrastructure, and greater investment in the downstream sector by governments and multinational firms are likely to drive the market. However, the UAE fuel station market is likely to be restrained by rising demand for electric vehicles in the country, changing gasoline prices, and rigorous rules imposed by the fuel station industry.

Since most commercial and residential areas in the country rely on diesel generators for power, the COVID-19 epidemic had a negative influence on the usage of refined petroleum products such as diesel.

FUEL PRICES IN UAE FOR JANUARY 2023

  • Super 98 - Dhs2.78 per liter, down from Dhs3.30 in December.  
  • Special 95  - Dhs2.67 per liter, down from Dhs3.18 in December.

The fuel sold in Dubai and the UAE can be classified as 

Types of Fuel in UAE 

According to the diesel fuel suppliers in UAE, the fuel can be categorized as

  • E-Plus 91 – For low-compression engines
  • Special 95 – For medium compression engines
  • Super 98 – For high-compression engines
  • Diesel

The numbers signify the fuel's octane rating, or RON - Research Octane Number. The octane rating is a measure of the performance of a fuel. The more compression the fuel can sustain before burning, the higher the octane number.

Higher octane fuels are utilized in high-performance engines with higher compression ratios. High-performance engines can be found in both sports and luxury vehicles.

To select the proper fuel type for their car, drivers should consult the owner's manual. There are no advantages to using a higher quality of gasoline than the manufacturer recommends.

Elements that affect the price of fuel price in the UAE.

Crude oil is refined into products such as gasoline and diesel. In 2015, the UAE discontinued fuel subsidies. Previously, approximately $7 billion was spent each year to maintain the price of gasoline and diesel low.

UAE Fuel Market Trends

The country's car fleet has grown dramatically over the last decade, which will raise demand for fuel stations in the coming years. According to the International Organization of Motor Vehicle Manufacturers (OICA), total vehicle sales (all types of vehicles) in the country reached 90,631 units in H1 2021, a 12% increase from 80,838 units in H1 2020.

In 2018, ENOC Group tested its first tiny gasoline station idea in Dubai. The pilot station is intended for inhabitants of residential developments and is outfitted with one above-tank fuel dispenser and a vending machine.

 

Historical Fuel Rates in UAE ( AED per liter)

Date 

Super 98

Special 95

Eplus 91 

Diesel 

January 2023

2.78

2.67

2.59

3.39

December 2022

3.30

3.18

3.11

3.74

November 2022

3.32

3.30

3.13

4.01

October 2022

3.03

2.92

285

3.76

 

8 Ways to Increase Diesel Fuel Mileage

Let’s look at how diesel trading companies in UAE are explaining few tips to improve diesel fuel mileage.

Turning off the engine: Excessive warm-up times can deplete diesel fuel, therefore avoid idling to save gasoline.

When possible, use shore power. This is also known as truckstop electrification because it allows drivers to plug in instead of idling, which helps to cool the vehicle while it is stopped. Shower power is projected to save up to $3,240 each year!

Avoid excessive engine revving. Slowly, rather than rapidly, shift into the next gear. It does have a drastic effect on saving fuel.

Reduce your highway average speed. This contradicts the notion of getting there faster, yet every mile per hour over 55 reduces your fuel economy by 0.1 miles per gallon.

Don't press the gas pedal. Try using smooth and constant gasoline acceleration to avoid fuel burn spikes.

Make use of your cruise control. By using cruise control to maintain a constant speed, you can avoid using the throttle to climb slopes.

Air Conditioner usage:  Utilize your air conditioner as little as possible. Running the air uses fuel, so avoid using it if possible to save money.

Traffic signals. Avoiding a complete halt can also save fuel up to some level.. You'll use less fuel if you can notice the light about to turn green and can safely slow down without stopping.

In need of a Fuel Trading Service?

We recognize your need for commercial fueling. As one of the most skilled diesel trading companies in Dubai, Redlines Diesel Trading tries to provide first-rate products and services to our customers at a fair price.

 

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