By Overview
Petrol prices in the UAE may increase in August due to higher global oil prices in July. The average oil price was around $84 a barrel in July, compared to $82.6 a barrel in June. Brent crude traded above $85 a barrel during the first half of July but dropped to $79.77 a barrel by the end of the month.
July Oil Price Trends
- High Start: Oil prices surged above $87 a barrel in the first week of July.
- Steady Decline: Prices eased to $81.56 by July 19.
- Peak Level: Crude prices hit their highest since April on July 4 due to a decline in US inventories.
Factors Influencing Prices
- Summer Driving Season: Increased demand during the Northern Hemisphere’s summer driving season.
- Middle Eastern Conflicts: Concerns about potential disruptions in global oil supplies due to conflicts in the Middle East.
UAE Fuel Price Committee
The UAE’s Fuel Price Committee adjusts retail petrol prices monthly to match global rates. In July, prices dropped by around 14-15 fils per litre:
- Super 98: Dh2.99
- Special 95: Dh2.88
- E-Plus 91: Dh2.80
Impact on Residents and Businesses
Residents and companies in the freight and logistics sectors are particularly affected by changes in fuel prices, as they influence transportation costs.
Expert Insights
Vijay Valecha, Chief Investment Officer of Century Financial, noted that increased tensions in the Middle East could impact crude oil supplies and reduce the likelihood of a ceasefire between Israel and Hamas. Additionally, market expectations suggest the US Federal Reserve may keep interest rates on hold and potentially reduce them in September.
Historical Fuel Prices in 2024
| Month | Super 98 | Special 95 | E-Plus 91 |
|---|---|---|---|
| January | 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 |
