UAE cuts fuel prices for June after extension of oil output cut

Petrol prices have been reduced by an average of 2.56 per cent for June



The UAE’s Ministry of Energy has announced a cut in fuel prices for June, after oil prices dropped in response to an international agreement by producers to extend the oil output cut.

In June, Super 98 will cost Dhs1.96 per litre, down 2.4 per cent from Dhs2.01 in May; Special 95 will be charged at Dhs1.85 per litre, a 2.6 per cent decline from Dhs1.90; and E Plus-91 will be priced at Dhs1.78 per litre, a decrease of 2.7 per cent compared to Dhs1.83 in the previous month.

The price of diesel price has also been reduced by 3.55 per cent to Dhs1.90 per litre in June, from Dhs1.97 in May.

The UAE adjusts its fuel prices depending on global oil prices. Fuel prices have been mostly increasing since the start of the year in the country, with the first decrease revealed for April and second now for June.

Global oil producers agreed on Thursday to extend oil output cuts – which were in place for the first six months of this year – by a further nine months to March 2018. The producers reduced output by 1.8 million barrels per day.

Following the announcement of the deal, Brent dropped by more than 4 per cent to as low as $51.03 a barrel, although it later rebounded.

The deal is expected to help oil prices at around $50 a barrel for Brent.