Relief for motorists as UAE announces petrol price cuts

Photo Illustration by Miguel Villagran/ Getty Images

The UAE has announced the retail fuel prices for the month of June. The fuel price committee reduced the retail rates for Super 98, Special 95, and E-Plus 91 by as much as 20 fils per litre.

From June 1, 2024, Super 98 petrol will cost Dhs3.14 a litre from Dhs3.34 a litre in May, while Special 95 will cost Dhs3.02 a litre compared to Dhs3.22 a litre the previous month.

Diesel will cost Dhs2.88 a litre in June compared to Dhs3.07 the previous month, while the price of E-plus 91 rose to Dhs2.95compared to Dhs3.15 the previous month.

The fuel price committee increased the retail rates for Super 98, Special 95, and E-Plus 91 by as much as 19 fils per litre in May. The committee meets every month to decide whether prices will increase or decrease.

The country has been revising retail petrol prices on the last day of the month ever since the government deregulated oil prices in August 2015 to bring them at par with the global rates.

Meanwhile, oil prices dropped early on Friday as investors responded to comments from US Fed officials who said it was too soon to start considering rate cuts, and following a surprise build in US gasoline stocks that weighed on the market.

Brent crude traded near $81.71 a barrel, down $0.15 or 0.18 per cent, as of 10:00 am GST on May 31, while US West Texas Intermediate crude futures dropped by $0.25 or 0.33 per cent to $77.65 a barrel.

Elsewhere, the Organization of the Petroleum Exporting Countries led by Saudi Arabia and allies led by Russia, together known as OPEC+ is working on a complex deal to be agreed at its meeting on Sunday that would allow the group to extend some of its deep oil production cuts into 2025.

OPEC+ has been implementing output cuts since late 2022 to support the market. The upcoming meeting will be closely watched, as traders and analysts expect production cuts to remain in place, potentially further bolstering prices.

Goldman Sachs raised its global oil demand forecast for 2030, with expectations for consumption to peak by 2034.

Read: OPEC+: Understanding the differences over oil production capacity