Petrol prices in UAE: Are fuel rates going to rise further?
Fuel prices in the UAE rose on February 1 after two months with stable rates prompting analysis over potential additional increases in future months because global oil market dynamics shift alongside existing trade tensions.
The possibility of further price increases exists according to analysts because the global oil market continues to experience volatility due to geopolitical tensions and economic shifts. The UAE implements monthly fuel price adjustments since 2015 to synchronize with international market changes. The recent increase in fuel prices has sparked renewed debates about the viability of maintaining low fuel prices in the area given past pricing patterns.
For February, the new fuel prices are as follows: The price of Super 98 petrol stands at Dh2.74 per litre now after rising from Dh2.61 in January. The current fuel prices remain far below the highest recorded price of Dh4.63 per litre from July 2022 which emerged due to increasing global oil demand and economic recovery after Covid-19.
The complexity of global economic issues creates uncertainty about future petrol prices. The current trends in the oil market point toward the possibility of additional movements in oil prices according to analysts. Brent crude prices might surpass the $80 per barrel threshold again due to increasing geopolitical tensions caused by US sanctions on Iran and North American supply chain disruptions.
The average price for Brent crude oil will reach $75.33 per barrel in the first quarter of 2025 and then show a slight decline in the following quarters. Multiple factors create this volatility which includes geopolitical events and expected effects of US trade policies.
The "maximum pressure" campaign by President Trump aims to end Iranian oil exports thus potentially eliminating 1.3 million barrels daily from the global market. Past events demonstrate that these measures can trigger substantial price rises which was proven in 2018 when oil prices exceeded $80 per barrel because of heightened sanctions.
Motorists will experience substantial effects when the UAE alters its fuel prices. Geopolitical tensions might trigger immediate price hikes but these effects could diminish over time if Opec+ boosts production or economic worries reduce demand.
The short-term risk factors could lead to higher prices according to Goldman Sachs and other major financial institutions but their long-term outlook remains cautious because of large spare capacity together with possible demand loss from tariffs.
Motorists in the UAE who are used to stable and affordable fuel prices should expect price changes in the upcoming months. The relationship between internal pricing decisions and worldwide market forces will play a key role in shaping how fuel price changes affect consumers directly.
Motorists in the UAE face an uncertain future as the country revises its fuel prices for February. The present fuel prices mirror worldwide geopolitical challenges but show promise for future stabilization over the medium to long term. Fuel cost changes require UAE motorists to stay updated on local price adjustments and global oil market movements.
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