Oil prices across the globe, recorded in July, may result in higher petrol prices recorded in August in the UAE. The International Monetary Fund estimated that overall, the global oil price in July averaged $84 a barrel, slightly higher than the $82. 6 in June. The Brent crude, at a range of $85 per barrel at the beginning of the month, was around $79 towards the middle of the month. 77 by the end of July and increase to 89 by the end of December.
Oil prices also followed the same trend and kicked off July by trading above $87 per barrel in the first week of the month. They declined to $A81 per barrel. 56 by July 19.
On July 4, prices are at their highest level since April due to a decline in US oil inventions. Also, demand went up during the Northern Hemisphere’s summer driving season, and there were speculations of problems with the oil supplies due to the war in the Middle East.
In the UAE, the Fuel Price Committee administers the market prices for retail petrol to consumers, which change monthly according to global rates. During July, the cost of petrol was cut by about 14-15 fils per liter, while the Super 98 retailed at Dh 2. 99 and the Special 95 at Dh2. 88, and the E-Plus 91 at Dh2. 80 per litre.
Petrol prices going up and down very often influence the transport of many people in UAE, especially those using private cars to and from work, companies involved in transporting goods in the case of freight, and so on.
Some of the market speculations that Vijay Valecha noted to be from Century Financial include a likelihood of the escalation of tension in the Middle East impacting the availability of crude oil and its impact on petrol volatility in the future.
“The tensions have also failed to boost the chances of a cease fire between Israel and Hamas in the region today Markets are also awaiting the outcome of the meeting of the US Federal Reserve this week; general market sentiment is that the US Federal will not increase the interest rates this time but might slash them in the September meeting,” Valecha added.
UAE petrol prices 2024
| 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 |
