In an exciting development for residents and motorists in the UAE, petrol prices have been cut to the lowest level since January 2024 for the month of October. The UAE Fuel Price Committee announced a significant reduction of Dh0.24 or over 8 per cent per litre for October to align with the international oil rates. This means that Super 98, Special 95, and E-Plus 91 will cost Dh2.66, Dh2.54, and Dh2.47 per litre respectively, compared to higher prices in the previous months. This reduction brings relief to consumers who have been facing higher fuel prices for some time.
It is interesting to note that the previous lowest level of petrol prices this year was recorded in January, when Super 98, Special 95, and E-Plus were selling at Dh2.82, Dh2.71, and Dh2.64 per litre respectively. The UAE has been adjusting local petrol and diesel prices at the end of every month since the government deregulated oil prices in 2015. This move allows prices to fluctuate based on international oil rates, offering more transparency and flexibility to consumers.
The decline in petrol prices for October comes at a time when global oil prices have been fluctuating. In September, Brent oil fell below $70 a barrel, and on Monday afternoon, Brent and WTI were trading down at $71.62 and $69.98 per barrel respectively. Market analysts like Milad Azar from XTB Mena have highlighted potential supply disruptions from Middle Eastern producers as a factor supporting oil futures. The risk of conflict in the Middle East could lead to interruptions in oil supply, driving prices higher and urging traders to remain cautious.
Last week, oil prices experienced a drop due to concerns about demand, but potential measures from China and monitoring demand levels in the US could help boost market sentiment. US crude inventory figures to be published in the coming days could also impact demand expectations. With ongoing fluctuations in global oil prices and market dynamics, consumers in the UAE can benefit from the government’s periodic adjustments to local fuel prices.
Looking at the price trend for petrol in the UAE in 2024, it can be observed that prices have seen fluctuations throughout the year. From a high of Dh3.34 per litre for Super 98 in May to the current low of Dh2.66 per litre in October, consumers have experienced varying price levels. This price chart illustrates the impact of global oil trends on local fuel prices and reinforces the importance of aligning local prices with international rates for a fair and transparent pricing mechanism.
As consumers in the UAE continue to benefit from reduced petrol prices for October, the government’s commitment to aligning prices with international oil rates ensures a fair and transparent pricing mechanism. With ongoing developments in global oil markets and potential supply disruptions in the Middle East, monitoring fuel prices and market trends remains essential for both consumers and traders. By staying informed and adapting to changing market dynamics, motorists in the UAE can make informed decisions about their fuel consumption and optimize their budgets accordingly.
