Petrol prices in the UAE may see a rise in August due to higher global oil prices in July. On average, global oil prices were around $84 a barrel in July, up from $82.6 in June. Brent crude traded above $85 a barrel early in the month but dropped to $79.77 by the end of July.
Oil prices started strong in July, reaching over $87 a barrel in the first week before gradually decreasing to $81.56 by July 19.
Prices peaked on July 4, the highest since April, driven by a decline in US oil inventories. Additionally, rising demand during the Northern Hemisphere’s summer driving season and concerns about Middle Eastern conflicts impacting global oil supplies contributed to the increase.
In the UAE, the Fuel Price Committee adjusts retail petrol prices monthly to reflect global rates. In July, petrol prices were reduced by 14-15 fils per litre, with the Super 98 priced at Dh2.99, the Special 95 at Dh2.88, and the E-Plus 91 at Dh2.80 per litre.
The fluctuation in petrol prices affects many UAE residents, especially those travelling long distances for work and companies in the freight and logistics sectors.
Vijay Valecha, Chief Investment Officer of Century Financial, noted market concerns that increased tensions in the Middle East could affect crude oil supplies, influencing future petrol prices.
“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,” said Valecha.
| Month 2024 | 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 |
