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 falling in November, the potential savings have narrowed, making the distance travelled and the quantity purchased even more important to the calculation.

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.

The UAE Fuel Price Committee announced on Saturday that petrol prices will fall by 24 fils per litre across all three grades from November 1. Super 98 will cost Dh4.16 per litre, Special 95 Dh4.04 and E-Plus 91 Dh3.97. Diesel will fall by 5 fils to Dh4.75 per litre.

Based on these new UAE rates and Oman's previously published October prices, motorists could save approximately Dh53 to Dh54 on a 30-litre purchase of 95-octane or 91-octane petrol, before travel expenses.

That compares with approximately Dh60 to Dh61 under October's UAE prices, a reduction of Dh7.20 in the potential difference.

For diesel, the corresponding difference would be approximately Dh69 for 30 litres, compared with about Dh70 previously.

These calculations use an exchange rate of approximately Dh9.54 per Omani rial and assume Oman's retail prices remain unchanged. They are provisional until Oman's November prices are confirmed.

For motorists travelling specifically to refuel, the gross difference of Dh53 to Dh54 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 Dh32 on a 100-kilometre round trip, based on November's UAE Special 95 price. That leaves around Dh21 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.

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.

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.

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

November's UAE petrol reduction comes despite a sharp rise in international oil prices during October, with Brent crude approaching $120 a barrel.

The UAE reviews retail fuel prices monthly in line with international energy-market conditions. The latest reduction illustrates why crude-price movements do not necessarily produce equivalent changes at petrol pumps.

For the cross-border calculation, the immediate effect is measurable. Every 10-fils reduction in UAE petrol prices narrows the gross difference on a 30-litre purchase by Dh3, assuming the corresponding Oman price remains unchanged.

November's 24-fils reduction therefore lowers that difference by Dh7.20 compared with October. The latest figures suggest a potential difference of around Dh53 to Dh54 on a 30-litre petrol purchase, subject to confirmation of Oman's November prices.

Whether that produces an actual saving depends mainly on whether motorists are already travelling to Oman or making a separate journey specifically to refuel. Oman's temporary purchase limit makes the quantity available an important part of that decision, alongside the cost of reaching the station.