UAE-Oman fuel trips: Does driving to the border really save you money?

Dubai: Is it worth driving across the Oman border just to refuel? With UAE petrol prices set for their November review, the answer depends on how much fuel motorists can purchase, the distance travelled and whether they are already planning a trip.

The question follows Oman's decision to introduce a temporary 30-litre limit on fuel purchases at petrol stations within 50 kilometres of border crossings, after increased demand at some outlets.

Oman's National Subsidy Committee approved the measure to ensure fuel remains available to as many consumers as possible.

Nasra bint Sultan Al Habsi, Director General of Commerce at Oman's Ministry of Commerce, Industry and Investment Promotion, explained during an interview with Oman Radio earlier this week that the restrictions were introduced to manage demand and maintain supplies. The measure applies to stations within the designated border areas, rather than across Oman.

What does the math reveal?

Based on the latest October petrol prices in the UAE and Oman, motorists could save approximately Dh60 to Dh61 on a 30-litre purchase of 95-octane or 91-octane petrol, before accounting for travel expenses.

For diesel, the corresponding difference is approximately Dh70 for 30 litres. The calculations use the published October fuel rates in both countries and an exchange rate of approximately Dh9.54 per Omani rial.

The amount motorists ultimately save depends on the quantity purchased and any additional expenses incurred. The temporary 30-litre restriction is particularly relevant because it limits the amount available in an individual transaction at affected stations.

The reports citing Al Habsi indicate that motorists may refuel more than once daily, although the precise application of the restriction to individual customers or vehicles has not been fully clarified.

Do border trip make financial sense?

For motorists travelling specifically to refuel, the gross difference of Dh60 to Dh61 is not necessarily the amount saved.

Applicable border charges, additional fuel consumption and any visa or insurance expenses must also be considered. Even a relatively short additional journey could reduce the benefit substantially.

For example, a vehicle consuming eight litres per 100 kilometres would use fuel worth approximately Dh34 on a 100-kilometre round trip, based on October's UAE Special 95 price. That leaves around Dh26 of the initial difference before border-related expenses.

The calculation changes for motorists already travelling to Oman for work, family visits or other purposes. In those cases, refuelling during an existing journey may offer a saving without requiring a separate trip.

Why has Oman introduced the limit?

Oman's authorities have linked the temporary restriction to increased demand at certain petrol stations near border crossings. The National Subsidy Committee approved the measure to regulate purchase quantities and maintain availability for consumers.

The announcement does not establish that demand came exclusively from UAE-based motorists, nor does it indicate that the restriction applies nationwide. The 50-kilometre border makes a financial difference too.

Motorists travelling farther into Oman may encounter stations outside the designated area, although doing so solely to refuel would involve additional travel.

How fuel prices change calculations?

The financial comparison could shift when November fuel prices are announced.

International oil prices have risen sharply during October, with Brent crude approaching $120 a barrel amid concerns over Middle East supplies and shipping costs. The rally has increased the possibility of another adjustment in UAE retail fuel prices, although the final rates will depend on the monthly pricing review.

If the UAE's Special 95 price increases by 20 fils per litre while the corresponding Oman price remains unchanged, the gross difference on a 30-litre purchase would increase by Dh6. A 50-fils increase would add Dh15 to that difference. Note: These are illustrative calculations, not official figures.

For now, the October numbers suggest that a 30-litre purchase offers a potential difference of around Dh60 to Dh61 for petrol. Whether that translates into a worthwhile saving depends mainly on whether the border journey is already planned or undertaken specifically to refuel.

Oman's temporary limit makes the quantity purchased an important part of that decision, alongside the cost of reaching the station.