UAE Petrol Prices Surge in February Amid Regional Conflict?

The UAE Fuel Price Committee is scheduled to disclose the petrol and diesel rates for February on January 31, aligning them with global market trends.

Throughout January 2024, oil prices exhibited a modest 1.8% increase on average compared to the previous month. It is a customary practice for the UAE to review and adjust retail fuel prices on the final day of the month for the upcoming month.

Global oil prices, while mostly below $80 a barrel in January, witnessed a recent uptick, reaching almost $83 a barrel for Brent and $77.05 for WTI. This upward trajectory is attributed to escalating geopolitical tensions in the Middle East.

In January, petrol prices experienced a third consecutive monthly reduction, with a noteworthy decrease of 14 fils per litre. Super 98, Special 95, and E-Plus 91 were priced at Dh2.82, Dh2.71, and Dh2.64 a litre, respectively.

Motorists, particularly frequent long-distance travelers, eagerly anticipate petrol price announcements to make necessary adjustments to their monthly budgets. Local taxi operators similarly adjust their fares based on these announcements.

While there is a possibility of a slight upward adjustment in February prices, the confirmation awaits the official announcement.

Despite deregulation, fuel prices in the UAE remain notably lower than the global average. For instance, Special 95 was priced at Dh2.71 a litre on January 22, 2024, compared to the global average rate of Dh4.72 a litre. The market continues to closely monitor these fluctuations influenced by global oil dynamics and regional geopolitical developments.