UAE to announce petrol prices for June: will rates increase further?

Photo Illustration by Miguel Villagran/ Getty Images

The UAE fuel price committee is scheduled to announce petrol and diesel prices for June on Friday.

Since the government deregulated oil prices in August 2015, the UAE has been adjusting retail petrol prices on the last day of each month to align with global rates.

In May, the fuel price committee raised the retail prices for Super 98, Special 95, and E-Plus 91 by up to 19 fils per litre compared to the previous month.

The prices for May were Dhs3.34 for Super 98, Dhs3.22 for Special 95, and Dhs3.15 for E-Plus. Meanwhile, the price of diesel decreased by 2 fils to Dhs3.07 in May compared to Dhs3.09 in the previous month.

Global oil prices rose in Asia on Tuesday, extending gains from the previous session. This was supported by expectations of strong fuel demand from the US during the summer season and ahead of an output policy decision from OPEC+ at a June 2 meeting.

OPEC+ has been implementing output cuts since late 2022 to support the market. The latest cut of 2.2 million barrels per day (bpd) is in place until the end of June unless extended.

The upcoming online meeting of OPEC+ on Sunday will be closely watched, as traders and analysts expect production cuts to remain in place, potentially further bolstering prices.

Goldman Sachs has raised its global oil demand forecast for 2030, with expectations for consumption to peak by 2034. This is due to a potential slowdown in electric vehicle adoption, which could keep refineries running at higher-than-average rates until the end of the decade.

The increase in oil demand is anticipated to boost the incomes of producers like the members of OPEC+ while also potentially increasing climate-warming emissions from fossil fuels.

Read: Goldman Sachs expects oil demand to keep growing until 2034