Fuel prices in UAE are still cheaper than over 110 countries despite hitting an all-time high in July due to a surge in global crude prices.
Retail fuel prices in the UAE hit an all-time high in July, reaching Dh4.63 per litre. The prices have surged nearly 75 per cent since January 2022, as Super 98 have risen from Dh2.65 per litre at the beginning of the year to Dh4.63 in July.
Since the UAE implemented fuel price deregulation in August 2015, prices crossed the Dh4 mark per litre for the first time in June.
According to globalpetrolprices.com data, fuel prices in the UAE are cheaper than in 117 countries and costlier than 50 countries, including the Gulf countries.
The average 95-octane price of petrol around the world is Dh5.39 per litre. However, there is a substantial difference in these prices among countries.
“As a general rule, richer countries have higher prices while poorer countries and the countries that produce and export oil have significantly lower prices. One notable exception is the US which is an economically advanced country but has low gas prices. The differences in prices across countries are due to the various taxes and subsidies for petrol. All countries have access to the same petroleum prices of international markets but then decide to impose different taxes. As a result, the retail price of petrol is different,” it said.
After staying above $100 per barrel during most of the year mainly due to the Russia-Ukraine crisis, global oil prices fell below $100 per barrel last week because of worries about the global economic slowdown denting demand for crude oil. But the price reversed again and was trading at $105.8 per barrel on Monday.
Fuel prices in the UAE are cheaper than major developed countries which imposed heavy taxes on oil including Japan, the USA, Switzerland, Canada, the UK, Germany, Singapore and others, according to globalpetrolprices.com.
The data showed Hong Kong, Iceland, Norway, Finland and Denmark have the highest fuel rates in the world, but fuel is affordable to large because of the high per capita income in those countries.
The data showed Hong Kong, Iceland, Norway, Finland and Denmark have the highest fuel rates in the world, but fuel is affordable to large because of the high per capita income in those countries. Petrol costs over Dh9 per litre in the above-mentioned countries.
While Venezuela, Libya, Iran, Syria and Algeria offer the cheapest fuel, the availability and buying power of the people in those countries are major issues in those countries due to high inflation.