Will UAE petrol prices rise for the 4th consecutive month in June?
In keeping with the global oil market, the UAE's fuel prices committee is likely to declare petrol prices for June later this week.
In May, the price of crude oil traded above $100 per barrel following the closure of the Strait of Hormuz as a result of conflict between US – Israel and Iran thus increasing petrol prices for the fourth month in a row.
Brent crude averaged $106 per barrel in May, up from about $99 in April, driven higher for a second month by worries about oil supply shortfalls.
Petrol Prices Have Already Increased Sharply
In May, UAE petrol prices rose for the third straight month.
Current UAE Fuel Prices
Super 98: Dh3.66 per litre
Special 95: Dh3.55 per litre
E-Plus: Dh3.48 per litre
Super 98 was priced at Dh2 in February, and since then fuel prices have surged by almost 50 per cent. 0.45 per litre, an increase of Dh1. 21 per litre.
Brent crude ended at $103.5 per barrel
Finale: WTI crude closes at $96.6 per barrel
2022 saw record fuel prices in the UAE when petrol crossed Dh4 a litre for the first time during the Russia-Ukraine war. Super 98: Rises to Dh4.63 per litre in 2022 while Special 95 rose to Dh4.52 per litre.
Impact on UAE Households
Households in the UAE have been hit directly at their wallets by monthly changes in fuel prices. Petrol is a vital bill families have to pay every week, so even seemingly little increases can add strain.
The continued rise in prices may mean motorists will have to pay a bigger chunk of income.
Oil Prices Could Ease if US-Iran Deal Progresses
Prices could come down over the next few days if there is a rapprochement between the US and Iran, analysts said.
Rania Gule, XS senior market analyst for MENA said its assessment of bottom-up for all land forces and any possible correlation between Washington and Tehran would present further Iranians oil in worldwide markets to diminish geopolitical pressures, it said.
Possible Market Impact
Oil prices may fall 4% to 8% initially
Iran's increased supply could help prevent a further deterioration of global oil markets
With geopolitical risks easing, the pressure on fuel prices is likely to ease
She added that oil prices may move downward during the first phase following any official announcement of a peace agreement.
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