UAE cuts petrol prices for March as crude oil prices drop on coronavirus fears

Oil has fallen more than 20 per cent this year

The UAE has cut fuel prices for the month of March, following two months of flat prices, the fuel price committee in the UAE announced on Thursday.

The prices have been fixed at Dhs2.16 per litre for Super 98 petrol, down 3.6 per cent from Dhs2.24 in February, while one litre of Special 95 will cost Dhs2.04, a decline of 3.7 per cent from Dhs2.12.

Diesel prices have been reduced by 6 per cent to Dhs2.25 per litre, compared to Dhs2.4 in February.

The move comes even as crude oil prices tumbled to touch new lows this week over fears over the spread of the coronavirus.

Brent for April lost 1.1 per cent to $52.82 a barrel on Wednesday.

Oil has fallen more than 20 per cent this year as the virus hit a market already awash with supply. Investors are hoping that the Organization for Petroleum Exporting Countries (OPEC) and its allies will be able to agree on deeper output cuts at a meeting in Vienna next week.

“The pressure on OPEC is immense and the oil market is really testing their resolve right now,” said Stephen Innes, chief market strategist at AxiCorp.

With inputs from Bloomberg