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UAE: Will petrol prices rise in November after two consecutive months of drop?

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At the end of every month, both residents and logistics and transport businesses expect new announcements of the pricing system where the last month’s prices would have been modified.


On Thursday, the Fuel Price Committee is scheduled to release the new rates. Petrol prices for the UAE could increase during the month of November. 


For the month of October, prices were revised down for the second consecutive month with Super 98, Special 95 and E-Plus 91 selling at Dh2.66, Dh2.54 and Dh2.47 per liter respectively.


Recalling the past behavior of consumers, they do not wait until the last week or until the last day to start making budgets. The UAE residents as well as transport and logistics companies wait for the announcement of revised rates at the end of every month and start making their monthly plans accordingly.


For them, their petrol and diesel prices are modified to match the global prices every month. This change has been a part of the “deregulation” policy which was announced in 2015.


In October, the average Brent price was about $75.5 a barrel, up from 73 in September. The prices were steady across the month of October and ranged from around 71 dollars per barrel to roughly 81 dollars owing to and around Middle Eastern geopolitical issues. Prices initially surged to 81 dollars a barrel due to fears that Israel may attack Iranian oil facilities, but then dropped to over 6 percent after Israeli limited strains on Iran, as both sides sought to avoid war on a large and global scale.

According to chief market analyst at FxPro Alex Kuptsikevich, Monday saw a drop in oil prices by 6% whereby the price of WTI crude oil per barrel was $67 and Brent oil was at $71. 


“Fiscal droughts of this extent normally reflect the low prices of the past two months when Israel was able to bombard Iranian oil capacity. Aftermath and retaliatory politics rhetoric stored up on both sides household speculations that both are trying to walk this one out for the meantime. As a consequence, the geopolitical risk premium shrank exceedingly. The price level has recommenced to levels witnessed prior to the last region escalation,” he stated. 


Other than being slashed by the price war, Kuptsikevich pointed out in September again, the price was close to the average lower band in the last 40 months, attributing to the recession in the world market.

Month

Super 98

Special 95

E-plus 91

January 2024

2.82

2.71

2.64

February

2.88

2.76

2.69

March

3.03

2.92

2.85

April

3.15

3.03

2.96

May

3.34

3.22

3.15

June

3.14

3.02

2.95

July

2.99

2.88

2.80

August

3.05

2.93

2.86

September

2.90

2.78

2.71

October

2.66

2.54

2.47

Find out if UAE petrol prices are set to rise in November after months of decline. To get the latest news subscribe to Just Dubai!

By: admin

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