UAE Fuel Prices for July: Will Rates Reflect Global Oil Market Trends?
The UAE is gearing up to announce revised retail fuel prices for July, aligning them with global market rates. In June, petrol prices saw a decrease of 20 fils per litre, setting Super 98, Special 95, and E-Plus 91 at Dh3.14, Dh3.02, and Dh2.95 per litre, respectively. This drop was attributed to a significant decline of nearly $5 in the average Brent oil price throughout May.
Despite a rise in oil prices globally through June, climbing from $78 to $86 per barrel by June 28, the average monthly price for Brent remained lower than in May, averaging $82.59 compared to $83.35. Since deregulating retail fuel prices in August 2015, the UAE adjusts petrol prices monthly based on the performance of oil prices in the preceding month, a practice that will reflect in the July revisions.
Currently, UAE petrol prices stand significantly lower, by Dh1.84 per litre on average, compared to the global average for June. Analysts, including Vijay Valecha, Chief Investment Officer at Century Financial, are closely monitoring factors such as summer fuel demand and geopolitical tensions, particularly around the Israel-Lebanon border, which could influence market dynamics.
Additionally, the decision by the US Federal Reserve to ease interest rates is anticipated to bolster oil demand by stimulating consumer spending. This development underscores the intricate global factors influencing fuel prices and economic decisions in the UAE and beyond.
Monthly Petrol Prices in UAE:
| Month | Super 98 | Special 95 | E-Plus 91 |
|---|---|---|---|
| January | 2.82 | 2.71 | 2.64 |
| February | 2.88 | 2.76 | 2.69 |
| March | 3.03 | 2.92 | 2.85 |
| April | 3.15 | 3.03 | 2.96 |
| May | 3.34 | 3.22 | 3.15 |
| June | 3.14 | 3.02 | 2.95 |
These price fluctuations reflect ongoing efforts to maintain stability in the local fuel market amidst broader global economic trends and geopolitical developments.