The UAE is likely to announce retail fuel prices for the month of October either today or tomorrow, to bring local fuel rates in line with global prices.
Authorities have announced revised fuel rates on the last day of each month for the past three months consecutively; previously, fuel prices used to be announced in the last week of every month, ever since UAE announced deregulation in 2015.
The UAE has slashed retail fuel prices for the past two months; in August and September, fuel prices were reduced by around Dh1.4 per litre in the wake of a drop in energy prices due to fear of recessions gripping the global economy.
Retail fuel prices crossed Dh4 per litre mark for the first time in June 2022 since UAE announced deregulation in 2015, and reached a peak of Dh4.63 per litre in July 2022.
In September, Super 98 petrol costs Dh3.41 per litre, Special 95 at Dh3.30 and E-Plus 91 at Dh3.22 – while diesel has been priced at Dh3.87 a litre for the month of September.
Earlier this week, global oil prices plunged to their lowest levels since January this year following fears of a looming global recession. Brent was trading at $89.6 and WTI at $82.39 a barrel on Thursday afternoon.
According to globalpetrolprices.com, the average petrol cost in the UAE is Dh3.3 per litre, which is much cheaper than the global average petrol price of Dh4.66 per litre.
The drop in fuel prices positively impacts inflation in the countries, making the prices of food and other groceries affordable for consumers.
Retail fuel consumption on the rise
As the UAE’s economic recovery bounces back from the pandemic, retail fuel consumption is also on the rise due to growth in economic activity.
“The fuel consumption has not reached the pre-pandemic level and it is still down by around 15 per cent, but volume is increasing rapidly, especially in the jet fuel segment. Retail fuel is also coming up slowly but is still 10-15 per cent below the pre-pandemic level,” Saif Humaid Al Falasi, group CEO at Enoc, a leading fuel retailer in the UAE, told Khaleej Times in a recent interview.
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