UAE: Will petrol prices rise in November after two consecutive months of drop?

The country's budget-conscious residents as well as logistics and transport companies look forward to revised rates at the end the every month

Waheed Abbas

Published: Wed 30 Oct 2024, 9:46 AM

Last updated: Wed 30 Oct 2024, 10:20 AM

Petrol prices in the UAE could rise for the month of November when the Fuel Price Committee will announce revised rates on Thursday.

For the month of October, prices were revised down for the second consecutive month with Super 98, Special 95 and E-Plus 91 selling at Dh2.66, Dh2.54 and Dh2.47 per litre, respectively.

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UAE’s budget-conscious residents as well as logistics and transport companies look forward to revised rates at the end the every month to adjust their budgets accordingly for the next month.

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The UAE revises petrol and diesel prices on the last day of every month to bring them in line with global rates as a part of the deregulation policy announced in 2015.

Brent price averaged around $75.5 per barrel in October compared to $73 in September. It traded as low as $71 per barrel to as high as nearly $81 a barrel in October as prices were strongly influenced by geopolitical tension in the Middle East. Initially, prices jumped to $81 a barrel due to concerns about Israel attacking Iran’s oil facilities but plunged over six per cent after Israel’s limited strikes on Iran as both parties looked to avoid a large-scale war.

Alex Kuptsikevich, chief market analyst at the FxPro, said the price of crude oil fell by six per cent on Monday to $67 a barrel for WTI and $71 for Brent.

“This return to the lows of the last two months is due to Israel's attack on Iran's oil capacity. The aftermath and retaliatory rhetoric from politicians in both countries have fuelled speculation that both sides are trying to avoid escalation for now. As a result, the geopolitical risk premium has fallen sharply. The price has returned to levels seen before the latest escalation in the Middle East,” he said.

In September, Kuptsikevich added, the price was near the lower end of its 40-month range, reflecting the slowdown in the global economy.

Month	Super 98	Special 95	E-plus 91
January 2024	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
August	3.05	2.93	2.86
September	2.90	2.78	2.71
October	2.66	2.54	2.47