UAE petrol prices to drop in July after four months of increases - but by how much?
Motorists across the UAE are expected to receive some welcome relief in July as petrol prices are likely to decrease after four consecutive months of increases. The expected reduction comes as global oil prices have fallen sharply from the highs caused by tensions in the Middle East and disruptions to energy supplies.
UAE Fuel Prices Rose Sharply Over the Last Four Months
Fuel prices in the UAE climbed significantly between February and June due to the conflict in the Middle East, which disrupted shipping through the Strait of Hormuz and pushed global oil prices higher.
In June, fuel prices stood at:
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Super 98: Dh3.95 per litre
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Special 95: Dh3.83 per litre
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E-Plus 91: Dh3.76 per litre
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Diesel: Dh4.33 per litre
The price surge has had a major impact on motorists. Super 98 increased by more than 61 percent, rising from Dh2.45 per litre in February to Dh3.95 in June. Filling a 60-litre fuel tank now costs approximately Dh237, compared to around Dh147 four months ago. Owners of larger SUVs and 4x4s with 80-litre tanks have seen their fuel costs increase from roughly Dh196 to Dh316.
Why Petrol Prices Could Fall in July
The outlook for July is much more positive as global crude oil prices have declined throughout June. While June's UAE fuel prices were based on May's average oil price of around $106 per barrel, Brent crude has dropped significantly during June, falling from approximately $95 per barrel at the beginning of the month to the low $70s.
Key reasons behind the expected price drop include:
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Brent crude briefly fell below $72.50 per barrel, returning to levels seen before the conflict.
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UAE fuel prices are calculated based on the monthly average of global oil prices rather than daily fluctuations.
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The sustained decline in oil prices throughout June is expected to be reflected in July's retail fuel prices.
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Unless fresh supply disruptions or renewed geopolitical tensions emerge in the Gulf region, July is expected to bring the biggest reduction in UAE petrol prices since the four-month streak of increases began.
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