Will the UAE announce fuel prices for August, potentially resulting in an increase in petrol rates?

Petrol prices in the UAE may increase in August due to higher average global rates in July compared to the previous month.

Worldwide, the average price of oil in July was approximately $84 per barrel, up from $82.6 per barrel in the prior month. Brent reached above $85 per barrel in the first half of the month but dropped to $79.77 per barrel on Monday night.

During July, oil prices began strongly by surging above $87 per barrel in the initial week before gradually decreasing to $81.56 by July 19. Crude oil prices reached their highest point since April on July 4 because there was a decrease in inventories in the United States.

Furthermore, prices saw an increase in July due to the heightened demand in the summer driving season in the Northern Hemisphere and concerns over the potential spread of Middle Eastern conflict impacting global oil supplies.

The Fuel Price Committee in the UAE adjusts retail gas prices monthly to match international rates.

In July, there was a decrease of approximately 14-15 fils per liter in the UAE, setting Super 98, Special 95, and E-Plus 91 at Dh2.99, Dh2.88, and Dh2.80 per liter, respectively.

Numerous individuals who frequently commute for their jobs, along with companies specializing in shipping and transportation, eagerly anticipate changes in petrol and diesel prices due to their significant influence on their operations.
According to the chief investment officer of Century Financial, Vijay Valecha, there are concerns in the market that rising tensions in the Middle East could affect the availability of crude oil.

The rise in tensions has also decreased the possibility of a ceasefire between Israel and Hamas in the UAE, causing an increase in petrol prices in the region. At the same time, the market is anticipating the results of the upcoming meeting of the US Federal Reserve. Valecha stated that the overall belief in the market is that the US Federal Reserve will maintain interest rates this time and lower them during the September meeting.

Keep an eye out for the upcoming fuel price announcement in August in the UAE to see if there will be an increase in petrol prices and how it might affect your budget! Subscribe to Just Dubai for the latest news updates!