Will Petrol Prices in UAE Drop Further in October?
Will Petrol Prices in UAE Drop Further in October?
Petrol prices in the UAE may see further drops in October, as global oil prices remained subdued throughout September. Brent crude averaged nearly $73 per barrel during the month, down from $78.63 in August. The decline is attributed to several factors, including increased supply and Saudi Arabia’s potential decision to ramp up production.
Saudi Arabia’s Influence on Oil Prices
Last week, oil prices took a hit, falling by over 4% within two days following reports that Saudi Arabia may abandon its target of $100 per barrel and increase oil output. Both WTI and Brent crude prices ended the week lower, closing at $68.81 and $71.98 per barrel, respectively.
UAE Fuel Price Updates
Since the UAE deregulated petrol prices in 2015, rates have been aligned with global oil prices and are adjusted monthly. The UAE’s Fuel Price Committee is expected to announce the updated petrol and diesel rates for October soon.
For September, the prices were revised as follows:
- Super 98: Dh2.90 per litre
- Special 95: Dh2.78 per litre
- E-Plus 91: Dh2.71 per litre
Global Factors Impacting Oil Prices
Several global events failed to uplift oil prices, despite being potentially price-supportive. The Organisation for Economic Co-operation and Development (OECD) shared an optimistic outlook, while rising geopolitical tensions in the Middle East and a 4.5-million barrel drop in U.S. oil inventories – the lowest levels in over two years – also made headlines. Additionally, significant stimulus measures from China were not enough to prevent crude prices from falling.
According to Ipek Ozkardeskaya, senior analyst at Swissquote Bank, U.S. crude dropped below $70 again, facing ongoing selling pressure. Investors have been scaling back their long positions in oil, despite factors that could have supported prices.
Historical Fuel Prices in the UAE (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 |
| August | 3.05 | 2.93 | 2.86 |
| September | 2.90 | 2.78 | 2.71 |
Looking Ahead: What to Expect for October
With global oil prices on a downward trend, there is anticipation that petrol prices in the UAE could see further decreases in October. The official announcement from the UAE Fuel Price Committee is expected soon, bringing clarity on what consumers can expect at the pump.
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