Petrol prices in the UAE are expected to rise in August as global oil prices averaged higher in July compared to June.
In July, global oil prices averaged around $84 a barrel, up from $82.6 a barrel in the previous month. Brent crude, which traded above $85 a barrel in the first half of July, dropped to $79.77 a barrel by Monday evening.
The month saw oil prices start strong, peaking above $87 a barrel in the first week, then easing to $81.56 by July 19. This surge was influenced by a decline in US inventories, increased demand during the summer driving season in the Northern Hemisphere, and concerns about potential disruptions to global oil supplies due to Middle Eastern conflicts.
The UAE’s Fuel Price Committee adjusts retail petrol prices monthly to reflect global market trends. In July, the prices were reduced by around 14-15 fils per litre, setting Super 98, Special 95, and E-Plus 91 at Dh2.99, Dh2.88, and Dh2.80 per litre, respectively.
For many residents, especially those commuting long distances or involved in freight and logistics, petrol and diesel rates are crucial as they directly impact their expenses.
Vijay Valecha, chief investment officer at Century Financial, highlighted market concerns about increased tensions in the Middle East affecting crude oil supplies. “The increase in tensions has also reduced the chances of a ceasefire between Israel and Hamas in the region. Meanwhile, the market is also waiting for the outcome of the meeting of the US Federal Reserve later this week. General perception in the market is that the US Federal Reserve will keep the interest rates on hold this time, and will reduce it in the September meeting,” Valecha noted.
Here’s a look at the UAE fuel prices for 2024 so far:
Month | Super 98 | Special 95 | E-Plus 91 |
---|---|---|---|
January | 2.82 | 2.71 | 2.64 |
February | 2.88 | 2.76 | 2.69 |
March | 3.03 | 2.92 | 2.85 |
April | 3.15 | 3.03 | 2.96 |
May | 3.34 | 3.22 | 3.15 |
June | 3.14 | 3.02 | 2.95 |
July | 2.99 | 2.88 | 2.80 |
With the upcoming announcement for August, residents and businesses are keenly awaiting to see how the latest global trends will influence local petrol prices.