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Petrol prices in UAE revised for August

Prices had been lowered for the month of July.

Motorists across the UAE will have to pay more to fill up their fuel tanks as petrol prices are set to increase for the month of August.

Fuel prices had previously been lowered for the month of July, bringing relief to motorists after several months of continuously rising petrol prices. The UAE Fuel Price Committee on Tuesday announced that it had increased fuel prices for the month of August 2019. Super 98 petrol will now cost Dh2.37 per litre, compared to Dh2.30 a litre in July, while Special 95 will cost Dh2.26 a litre, compared to Dh2.18 a litre the previous month. One litre of diesel will cost Dh2.42 a litre, compared to Dh2.35 a litre in June.

Many motorists expressed their dismay at the increase in prices, especially those that relied on their vehicles for their daily commute to work.

"We were happy that the prices had gone down but now they are up again and it is going to cost more for a full tank," said Faisal Khan, a Sharjah resident, who drives an SUV. "Several of my friends are thinking about switching to a smaller and more fuel efficient car model and it makes sense, especially if you have to drive to Dubai every morning and then back for work."

August's fuel ? prices as per the #UAE fuel committee are out. Check them below. #InspiringEnergy

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- ENOC (@ENOC) July 30, 2019

Global uncertainty continues

Oil prices rose for a fourth day on Tuesday on hopes that the US Federal Reserve will cut interest rates. Brent crude rose 56 cents to $64.27 a barrel by 0906GMT; however, it is set for a monthly fall of more than three per cent. US crude was up 44 cents at $57.31 a barrel, but is also set for a monthly decrease of around 1.8 per cent. Experts have also expressed their concerns about slow economic growth across key markets, as well as any key decisions that will be made at the US-China trade negotiations. Ever since talks regarding the tariff war broke down, both sides have been cautious about a possible breakthrough when negotiations will resume.

Several experts also pointed out that US crude oil production could rise towards the end of 2019. Based on the EIA's Short-Term Energy Outlook, US crude oil production will average 12.4 million barrels per day (bpd) in 2019. So far, US crude oil weekly production averaged approximately 12 million bpd this year.

Recently, Saudi Arabia's energy minister, Khalid Al Falih, announced that the Kingdom plans to raise the capacity of its east-west pipeline by 40 per cent in two years so more of its oil exports can avoid passing through the Strait of Hormuz. This, he said, is an immediate first step to secure shipments through the strategic waterway, after attacks on oil tankers in the area and the seizure of a British-flagged ship by Iran. Exporters are also looking at alternatives, such as Iraq, which plans to export more oil to Turkey's port of Ceyhan and to build new pipelines to ports in Syria, Lebanon, and Saudi Arabia. Al Falih added that global oil demand was reasonably healthy but was lower than estimates had put it at the start of 2019.

rohma@khaleejtimes.com