Living in Dubai
Prices of gasoline/petrol/diesel in Dubai
The usage and pricing of gasoline is dependent on factors such as crude oil prices, processing and distribution costs, local demand, strength of local currencies, availability of local sources of gasoline, and local taxation. Fuels are traded across the world, and although the trade prices may be similar, the price paid by consumers reflects the national pricing policy, in general. Some regions, such as Japan and Europe, impose high taxes on gasoline, while others such as Venezuela and Saudi Arabia, subsidize the cost. Western nations, particularly the United States, have the highest usage rates of gasoline per person.
UAE is a member of World Organization of Oil Producing Countries (OPEC), and in UAE, the Federal Government fixes retail prices for gasoline and diesel, with pricing being below retailers' cost. Last year, the government permitted two increases in pump prices. Gasoline was sold nationwide in the UAE at Dh.1.72 (47 cents a litre, or $1.88 per gallon) last year. While Saudi Arabia, the world’s largest oil exporter, charges only 17 cents a litre at the pump, the UAE is still among the top ten Asian countries with cheapest gas prices in the world, as per the results from ‘Business Insider’, quoted by DNEWSGLOBAL.com on 27th April 2011.
Abu Dhabi, the UAE Capital, holds more than 90percent of UAE’s oil reserves and refines and sells its own crude. However, petrol prices in the UAE are more than neighboring countries. This is because, although oil can be taken out of the ground in a comparatively cheap manner in the UAE, it is not all refined locally into petrol. Although Abu Dhabi has few refining facilities, Dubai has none.
Majority of the gas stations in Dubai accept only cash payments.
Price of petrol in Dubai - Dhs.1.72 per litre (as of November 2011)
Price of diesel in Dubai - Dh.3.5 per litre (as of November 2011)
Compressed Natural Gas (CNG) - CNG is an alternative fuel for cars in the UAE. This is a unique pipe-less, cost-effective, and environment-friendly natural gas transportation solution, to be implemented across UAE, aimed at reducing carbon emissions and cutting down fuel costs. Government vehicles will first switch to CNG, followed by private cars. This will soon serve as an environment-friendly alternative to petrol or diesel within next five years.
The total cost of conversion per vehicle from gasoline to CNG is Dh.7,400 for 4-cylinder vehicle, Dh.8000 for 6-cylinder, and Dh.9,400 for 8-cylinder vehicles, according to Mahir Al Sayed Al Rafaee, Manager for CNG Centre.
The CNG cost is Dh.1.32 per cubic meter, wherein a tank of 4-cylinder vehicle can be filled completely with Dh.50-60, while Gasoline (special) costs Dh.1.72 per litre.