UAE fuel prices dip to lowest in 8 months; here is how petrol rates rose and fell this year

Retail fuel prices in the UAE have dropped to lowest in eight months in October following three months of consecutive reductions in prices by the fuel price committee.

Fuel prices in UAE started to increase in February 2022 and crossed the Dh4 per litre mark in June this year for the first time in the country’s history due to the Russia-Ukraine conflict that broke out on February 24, 2022.

The oil prices rise started to accelerate after Russia and Ukraine conflict and reached a peak in July this year when Super 98 was priced at Dh4.63 per litre – the highest ever rate in the country.

On Friday, the UAE priced Super 98 petrol at 3.03 a litre for the month of October as compared to Dh3.41 in September. Similarly, other fuel variants’ prices were also reduced for October.

In March, Super 98 petrol was priced at Dh3.23 a litre as compared to Dh2.94 in February.

Fuel prices were deregulated in August 2015 in the UAE as the government-linked local fuel prices to global oil rates. A committee has been set up to review fuel prices in the UAE every month.

Following the outbreak of the military conflict, oil prices consistently stayed above the $100 per barrel mark. But the prices started to decline in the last few months after fear about the global recession began to take a toll on the commodity prices.

On September 23, global oil prices plunged about five per cent to hit an eight-month low as the US dollar strengthened to over two decades and worries about rising interest rates pushing major global economies into recession, resulting in a drop in global oil demand.

Energy analysts say that oil price swings have become the norm due to global economic worries and the prospect of tightening oil supplies.

• UAE slashes retail fuel prices by 38 fils per litre for October