UAE to announce petrol prices for July: will rates drop further?

The UAE fuel price committee is set to make a significant announcement on Sunday, revealing the petrol and diesel prices for July.

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 June, the fuel price committee slashed the retail prices for Super 98, Special 95, and E-Plus 91 by 20 fils per litre compared to the previous month.

The prices for June were Dhs3.14 for Super 98, Dhs3.02 for Special 95, and Dhs2.95 for E-Plus. Similarly, the cost of diesel was reduced by 19 fils to Dhs2.88 in June compared to Dhs3.07in the previous month.

Global oil prices took a hit on Thursday due to a surprise build in US stockpiles, sparking concerns about sluggish demand from the world’s top oil consumer. However, these declines were tempered by fears that an escalation of geopolitical tensions in the Middle East could disrupt global supplies.

Earlier in June, OPEC+ said it would be extending production cuts into 2025 and laid out plans for phasing out voluntary cuts. The agreement reached in Riyadh exceeded expectations in some ways, extending so-called ‘voluntary’ output curbs from key members, including Saudi Arabia and Russia, well into next year.

JPMorgan analysts said in a note that continuing the voluntary cuts to their full extent will keep the oil market tight until the end of September and potentially boost prices by as much as $10 a barrel.

Brent crude traded near $85.61 a barrel, down $0.09 or 0.11 per cent, as of 10:00 am GST on June 27, while US West Texas Intermediate crude futures dropped by $0.10 or 0.12 per cent to $80.80 a barrel.

Cross-border strains between Israel and Hezbollah have been escalating in recent weeks, stoking fears of an all-out Israel-Hezbollah war that could draw in other regional powers, including major oil producers.

Read: Relief for motorists as UAE announces petrol price cuts