UAE to announce fuel prices for August: Will petrol rates rise?

Oil prices averaged around $84 a barrel in July compared to $82.6 a barrel in the previous month

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Published: Tue 30 Jul 2024, 8:18 AM

Last updated: Wed 31 Jul 2024, 6:46 PM

[Editor's Note: The UAE has announced fuel rates for August. Click here to get the latest updates.]

Petrol prices in the UAE could see a jump in August as average global rates were higher in July compared to the previous month.

Globally, oil prices averaged around $84 a barrel in July compared to $82.6 a barrel in the previous month. Brent traded above $85 a barrel during the first half of the month but fell to $79.77 a barrel on Monday evening.

In July, oil prices started on a high note as prices surged above $87 a barrel in the first week before steadily easing to $81.56 on July 19. Crude prices hit their highest level since April on July 4 due to a decline in inventories in the US.

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In addition, prices also rose in July on the back of rising demand during the Northern Hemisphere’s summer driving season and worries about Middle Eastern conflict spreading and reducing global oil supplies.

The UAE’s Fuel Price Committee revises retail petrol prices at the end of every month to align with the global rates.

In July, the prices were reduced by around 14-15 fils a litre in the UAE, pricing Super 98, Special 95 and E-Plus 91 at Dh2.99, Dh2.88 and Dh2.80 a litre, respectively.

Many residents who travel long distances for their official work as well as freight and logistics companies look forward to petrol and diesel rates as they directly impact them.

Vijay Valecha, chief investment officer of Century Financial, said market fears that an increase in tensions in the Middle East region could impact the crude oil supplies.

“The increase in tensions has also reduced the chances of a ceasefire between Israel and Hamas in the region. Meanwhile, the market is also waiting for the outcome of the meeting of the US Federal Reserve later this week. General perception in the market is that the US Federal Reserve will keep the interest rates on hold this time, and will reduce it in the September meeting,” added Valecha.

Month 2024	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
July	2.99	2.88	2.80