UAE: Will petrol prices fall next month at pumps?

Global oil prices have been sliding about 30 per cent since June this year

Muzaffar Rizvi

Published: Wed 21 Dec 2022, 11:04 PM

Last updated: Fri 23 Dec 2022, 12:25 PM

Motorists across the UAE may have to pay less for petrol next month as oil prices have traded down so far this month amid fears of recession and lower demand due to China’s surging Covid cases.

On average, vehicle owners paid 20 per cent more for petrol in December as compared to early this year when they paid Dh2.65 per litre for Super 98, Dh2.53 for Special 95 and Dh2.46 for E-Plus 91 in January.

According to an UAE-based energy expert, motorists may get a "huge sigh of relief when the UAE fuel price committee announces rates for January next week".

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The Ministry of Energy adjusts fuel prices in the UAE in the last week of every month. Fuel prices have been liberalised to help rationalise consumption and encourage the use of public transport in the long run and incentivise the use of alternatives, according to the government officials.

Referring to a latest report, another expert said this year's average oil price of around $97 per barrel is good for the consumers, adding that oil prices next year will hover between $85 per barrel to $95 per barrel or less by $5-7 per barrel.

Global oil prices have fallen about 30 per cent since June as strict coronavirus restrictions in China have kept demand weak, and as some of the world’s major economies have signalled they are heading toward a recession.

Brent and West Texas Intermediate (WTI) crude oil futures, the international benchmarks, both traded close to one-year low mark in December. The Brent was hovering around $80 — lowest level since January, and WTI traded around $75 a barrel, a level last reached in December 2021.

Brent and WTI crude prices rose over 2.19 per cent to $81.74 per barrel and $77.88 per barrel, respectively, at 7pm on Wednesday.

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