UAE petrol prices: Could fuel cross previous record high of Dh4.63 a litre in November?

UAE petrol prices are expected to rise in November as ongoing conflict in the Middle East continues to push global crude oil prices higher. The latest escalation in regional tensions has raised concerns about oil supplies, potentially putting further pressure on fuel costs for motorists across the country.

Global Oil Prices Rise After Attacks on Saudi Energy Facilities

Global oil prices climbed on Wednesday following Houthi attacks on Saudi Arabia’s energy facilities. An attack on a refinery renewed concerns about supply disruptions from one of the world's major oil exporters.

Brent crude rose above $116 per barrel during Wednesday morning trading, while West Texas Intermediate (WTI) crude also recorded an increase.

WTI and Brent crude were trading at $101.48 and $115.68 per barrel, respectively, marking gains of 1.6 per cent and 1.8 per cent.

These increases have added to uncertainty in global oil markets, with geopolitical tensions continuing to influence prices.

UAE Petrol Prices Hit a Four-Year High in October

UAE petrol prices reached a four-year high in October, with all three petrol grades recording significant increases compared with September.

The October fuel prices were:

Super 98: Dh4.40 per litre, up from Dh3.80 in September.

Special 95: Dh4.28 per litre, up from Dh3.69 in September.

E-Plus 91: Dh4.21 per litre, up from Dh3.61 in September.

The increases have raised concerns among motorists about the possibility of another rise in November.

Why UAE Fuel Prices Could Increase in November

The UAE deregulated fuel prices in 2015, allowing retail petrol prices to reflect movements in global oil markets.

Crude oil prices have remained volatile amid regional tensions, concerns about supply disruptions and declining global oil reserves.

December crude oil contracts averaged around $107.30 per barrel in October so far, compared with approximately $102 per barrel in September.

If global oil prices remain elevated, the UAE could announce higher petrol prices for November.

Will UAE Petrol Prices Break the July 2022 Record?

Motorists are now waiting to see whether November petrol prices will exceed the previous record high of Dh4.63 per litre, recorded in July 2022 following the Russia-Ukraine war.

The UAE Fuel Price Committee is scheduled to announce the new rates on Saturday, October 31. The announcement will confirm whether petrol prices increase further or stabilise after October's sharp rise.

Regional Tensions Continue to Influence Oil Markets

Daniel Takieddine, co-founder and CEO of Sky Links Capital Group, said continuing tensions involving the Houthis and Saudi Arabia were contributing to concerns about oil supplies.

However, he noted that diplomatic efforts could help limit further increases in oil prices.

Regional governments have increased contacts with Tehran in an effort to revive negotiations, while Iran has reportedly shown some willingness to discuss an accelerated timetable under certain conditions.

According to Takieddine, meaningful progress in negotiations could reduce the perceived risk of further escalation and ease some of the geopolitical pressure on crude oil prices.

What UAE Motorists Should Expect

With global oil prices remaining volatile, UAE motorists may face higher fuel costs in November. However, the final rates will depend on market movements and the UAE Fuel Price Committee's monthly review.

The upcoming announcement on October 31 will provide clarity on petrol prices for the month ahead. Until then, motorists will be watching developments in the Middle East and global oil markets for signs of whether fuel costs are likely to rise further.