Fuel price hikes affect the cost of moving, food delivery, and vehicle towing services
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Khaleej Times
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Fuel price hikes affect the cost of moving, food delivery, and vehicle towing services

Following recent increases in fuel prices, operators of moving, vehicle towing, and restaurant services are analyzing how the rise in fuel tariffs will impact the cost of their services. These companies are also looking for ways to reduce unnecessary trips and control monthly expenses.

Starting October 1st, diesel fuel increased by 50 fils, reaching 4.80 dirhams per liter, while special gasoline of 95 quality rose by 59 fils, amounting to 4.28 dirhams per liter.

Zeyshan Khan, a freelancer specializing in moves in Sharjah, noted that a trip to Dubai can be about 40 kilometers one way. He explained that on long-distance transports, such as furniture and residential units from Sharjah to Dubai, they have to return empty because it is impossible to load another client's furniture in Dubai. Thus, additional fuel costs on the return journey become a loss.

The full route can cover between 80 and 100 kilometers. Depending on the vehicle, fuel consumption ranges from four to seven kilometers per liter. Based on this data, the increase in diesel fuel cost adds approximately 7 to 17 dirhams per round trip.

Khan stated that these amounts are not yet included in customer bills. 'We have not started charging extra fees yet. We first look at how much we will have to top up. We calculate costs every month. If they exceed 200 dirhams, we might have to share some costs with clients. But this month we do not plan to add anything,' he said.

Transporters are also considering combining cargo from different clients into one trip. Khan added, 'We are thinking of loading one client's furniture and safely storing it for a day or two. Then we can look for another client who is moving in the same direction. If we can take the belongings of two or three clients in one trip, they save money, and we save fuel.'

Towing operators are also assessing the impact of rising fuel prices. A tow truck might go to an abandoned vehicle, deliver it to a garage, and then return to base. Rafik, a towing operator from Sharjah, specified that for a trip of 100 to 150 kilometers, the increase in diesel fuel cost could add 8 to 25 dirhams, depending on the truck's fuel consumption.

Rafik also stated that tariffs have not been raised yet. 'We haven't added anything to the client's bill. We are still checking how much extra fuel we use each month. We are not planning any changes this month,' he said. He also mentioned that the approach of winter may lead to an increase in calls from desert and mountainous areas, which could complicate managing additional fuel costs due to more long-distance orders.

When Khaleej Times asked restaurants about the impact on food delivery, they replied that the difference is smaller because most orders are delivered within nearby areas. Nazir, a restaurant owner in Al Nahda, noted, 'Our deliveries are made in close proximity, not over long distances. Motorcycles offer better fuel efficiency, and we usually refuel once a week.'

Using an approximate estimate of 40 kilometers per liter, the increase in fuel cost for a 10-kilometer delivery will be about 15 fils. A weekly refueling of 12 to 14 liters will cost approximately 7–8 dirhams more than last month. The restaurant operator emphasized that the final impact will depend on the number of orders and the distance traveled. He added, 'For a single delivery, the additional fuel cost may be small. But if there are many deliveries or the distance is greater during the day, the total additional cost can reach 1 dirham in some cases. Currently, we are not adding a separate delivery fee.'

Currently, customers are not facing immediate tariff increases for moving, towing, or food delivery. Businesses are absorbing the extra costs while studying their monthly expenditures. However, if fuel prices remain high or operators travel long distances, some businesses may revise their tariffs later.

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Explanation of Differences in Gasoline Prices Between European and Arab Countries
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Explanation of Differences in Gasoline Prices Between European and Arab Countries

The difference in fuel cost between European and Arab countries is significant, even though both groups of countries are influenced by the global oil market. For example, filling a 50-liter sedan in Qatar costs the driver about $29, whereas the same operation in Germany can cost approximately $132.

Despite rising fuel prices in many countries due to increased global crude oil prices and geopolitical tensions, the impact of this rise on the final price at the pump varies greatly depending on the driver's region of residence.

In the United Arab Emirates, the price of Special 95 gasoline reached 4.28 dirhams per liter in October, up from 3.69 dirhams in September. This is equivalent to approximately $1.17 per liter, amounting to about $58 for a full 50-liter tank.

However, prices differ in other parts of the Arab world. In Qatar, Super 95 remains at 2.10 Qatari riyals per liter, or about $0.58, which costs approximately $29 to fill a 50-liter tank. Egypt is even cheaper: gasoline with an octane rating of 95 costs 24 Egyptian pounds per liter, which is approximately $0.46 at the current exchange rate, and a full 50-liter tank costs about $23.

Jordan demonstrates that the Arab world cannot be considered a single fuel market. After a rise in global oil and petroleum product prices in September, the country increased the price of 95-octane gasoline to 1.36 Jordanian dinars per liter in October. Filling a 50-liter tank in Jordan will cost approximately $96 at a price of about $1.92 per liter, which is closer to European prices than in Qatar, Egypt, or the UAE.

European motorists generally pay significantly more. According to the latest data from the European Commission, the price of gasoline in Germany is about €2.35 per liter, in France—€2.21, in Italy—€2.16, and in Spain—€1.94.

To fill a 50-liter tank, this corresponds to approximately $132 in Germany, $124 in France, $122 in Italy, and $109 in Spain. This contrast is striking: the same amount of fuel costs about $29 in Qatar and $58 in the UAE, while in Germany the bill can exceed $130.

The price difference is not only due to which countries extract oil. Crude oil is only one component of the final price seen by drivers at the pump. Taxes constitute a significant portion of prices in Europe. Governments introduce excise duties, value-added tax, and other fees, causing drivers to pay more than just the basic cost of the fuel itself.

The European Commission publishes both pre-tax and post-tax prices, demonstrating the contribution of taxes to the total amount paid by consumers. Furthermore, higher oil prices exert additional pressure. This week, the European Commission reported that prices remain high despite stable oil supplies, with several member states beginning to implement measures to mitigate the impact on consumers.

There is no unified fuel pricing system in Arab countries. Some Gulf countries, which are oil producers, maintain relatively low domestic prices, while other governments use subsidies or regulated prices to slow the transmission of global market changes to consumers.

The UAE applies a monthly fuel pricing mechanism that reflects fluctuations in global energy markets, allowing international price changes to appear relatively quickly at gas stations. Jordan also reviews fuel prices monthly, but authorities have stated that the government is gradually adjusting prices rather than passing on the entire increase in international prices to consumers. Meanwhile, Egypt continues to regulate domestic fuel prices, creating an additional barrier between movements in the global oil market and what drivers ultimately pay.

The comparison shows why two drivers might fill identical cars on the same day and receive drastically different bills. Oil may trade globally, but the price at the pump is largely determined by the location of that station.

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