Petrol prices in the UAE are likely to experience a minor adjustment in October, as global oil prices remained relatively stable in August compared to July.
The UAE’s fuel price committee sets the retail prices for petrol and diesel at the end of each month, based on the global oil market trends from the previous month.
As of August, the average closing price of Brent crude has been $67.03 per barrel, a slight increase from the $66.90 per barrel recorded in the previous month.
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The UAE deregulated petrol prices in 2015 to align with international rates.
In September, Super 98 petrol in the UAE costs Dh2.70 per litre, Special 95 is priced at Dh2.58, and E-Plus at Dh2.51.
Petrol prices significantly impact any economy, as fluctuations can affect inflation rates, consumer spending, and business costs, particularly in sectors like logistics and construction. Furthermore, fuel prices directly influence airline and shipping operations, making them crucial for maintaining a competitive edge in global commerce.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that oil prices have been pressured downward recently due to news that Iraq, the Kurdistan Regional Government, and international oil companies have reached an agreement to resume crude exports via the pipeline to Turkey’s Mediterranean coast.
“The agreement aims to resolve a two-year payment dispute, potentially unlocking around 230,000 barrels per day of additional supply at a time when the market is already facing surplus forecasts, further weighing on prices. Geopolitically, risks remain centered around Russia’s energy sector. Ukraine has intensified strikes on Moscow’s energy infrastructure, while Western nations continue to consider additional measures to restrict Russian oil exports,” Valecha added.
