UAE to announce petrol, diesel prices for November; will rates rise due to Middle East crisis?

The UAE’s Fuel Price Committee is expected to announce revised retail petrol and diesel rates for November on Tuesday (tomorrow) to align prices with the global rates.

The UAE increased petrol prices for the past four consecutive months due to inflated global prices amidst high demand for crude.

For October, the retail prices were hiked slightly. Currently, Super 98 petrol costs Dh3.44 a litre, Special 95 is priced at Dh3.33 per litre, and E-Plus at Dh3.26. Diesel costs Dh3.57 a litre.

Since 2015, the UAE has aligned local retail fuel prices with global rates, hence, prices are revised at the end of every month to align with global prices. However, the global oil prices ticked up in October in the wake of the Middle East conflict between Israel and Palestinians.

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In October, Brent price fluctuated between $90.9 to $84 in the first week and then jumped to $92.38 on October 19 before settling down slightly lower at $89.54 a barrel by mid-day on October 30.

Samer Hasn, market analyst at XS.com, said there are more bullish signals and expectations supporting oil’s rise.

“The National Bank of Canada believes that the US is no longer able to make further withdrawals from strategic reserves in order to reduce oil prices, which may keep inventory levels below the historical average. Commerzbank also believes that oil prices may be supported by concerns about oil supplies remaining at high levels, with the conflict in the Middle East continuing and fears of its expansion,” said Hasn, adding that almost the same thing is believed by ANZ Bank, as the bank sees that the expansion of the conflict may disrupt the supply of global markets with about 20 million barrels of crude oil per day.

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