UAE to announce petrol prices for August: will we see another drop?

The UAE fuel price committee will soon revise retail fuel prices for August to align them with global rates.

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. Each month, the Ministry of Energy sets fuel prices based on the average global oil prices, whether they have gone up or down.

The retail prices also include the operating costs of distribution companies.

Petrol prices dropped by 15 fils per litre in July, pricing Super 98, Special 95 and E-Plus 91 at Dhs2.99, Dhs2.88 and Dhs2.80 per litre, respectively.

Meanwhile, the cost of diesel rose marginally to Dhs2.89 in July compared to Dhs2.88 in the previous month.

Global oil prices stabilised on Monday amid fears of an escalating conflict in the Middle East. The ongoing Israel-Gaza conflict has spread to multiple fronts, raising investor concerns about the potential impact on crude output from the world’s largest oil-producing region.

Brent crude traded near $80.62 a barrel, down $0.51 or 0.63 per cent, as of 15:56 GST on July 29, while US West Texas Intermediate (WTI) crude futures dropped by $0.53 or 0.66 per cent to $76.65 a barrel.

The Brent and WTI benchmarks lost 1.8 per cent and 3.7 per cent, respectively, last week due to sagging Chinese demand and hopes of a Gaza ceasefire agreement.

Data released earlier in July month showed that China’s total fuel oil imports dropped 11 per cent in the first half of 2024, raising concerns about the wider demand outlook in the world’s biggest crude importer.

Read: UAE announces fuel prices for July 2024: Petrol prices decrease, diesel slightly up