Will fuel prices go up in UAE in October?

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The UAE is set to revise retail petrol and diesel prices for October soon to bring the local fuel prices in line with the global rates.

The UAE Fuel Price Committee hiked fuel prices for September by over nine per cent for petrol. Currently, Super 98 petrol costs Dh3.42 a litre, Special 95 priced at Dh3.31 per litre, and E-Plus at Dh3.23. Diesel is charged at Dh3.40 a litre. The prices have been increased for three consecutive months.

Since 2015, the UAE has aligned local retail fuel prices with global rates, hence, prices are revised at the end of every month to bring them in line with global rates.

Globally, oil prices jumped by over $12 a barrel in September. Brent was trading at $83.87 on August 28, which rose to $97.41 on September 28 due to a rise in global demand, crude output cut and a drop in US crude stocks.

This increase in global prices will be reflected when fuel prices are revised for the month of October in the UAE in a day or two.

Analysts expect that oil prices could rise further and may touch $100 a barrel in the days ahead. “Record global demand and a strong global production cut by Opec+ have brought back the ghost of $100 per barrel. This may indicate that the fight against inflation is far from over,” said Hani Abuagla, senior market analyst at XTB Mena.

“During the summer, Saudi Arabia announced an additional voluntary cut of 1 million barrels a day, and Russia cut exports by 0.3 million barrels per day. Both of these actions have been extended to the end of this year. “The market had earlier expected a deficit of 2 million barrels per day by year's end, but it's now clear that this deficit will be even greater!,” said Abuagala.