Fuel prices in the United Arab Emirates have decreased for the first time in five months, with July seeing a decline due to a drop in global crude oil prices as supply conditions improve. This adjustment reflects a broader trend in international markets, where concerns over disruptions in the Middle East have diminished, leading to more stable energy prices.
As of this month, the UAE’s revised fuel prices are as follows: Super 98 now costs Dh3.40 per litre, down from Dh3.95; Special 95 is priced at Dh3.29 per litre, reduced from Dh3.83; E-Plus 91 is at Dh3.21 per litre, down from Dh3.76; and diesel has dropped to Dh3.60 per litre from Dh4.33. These changes demonstrate a significant reduction in costs for consumers and businesses alike.
The easing of international crude oil benchmarks is attributed to several factors, including progress in diplomatic negotiations involving the United States and Iran. This progress has contributed to an improvement in shipping activities through the strategic Strait of Hormuz, a key transit route for global oil supplies, which in turn has helped calm market volatility.
Since 2015, the UAE has pegged its domestic fuel prices to the fluctuations of global oil markets. Experts suggest that the increased availability of oil globally, coupled with higher exports from leading producers and the restoration of significant regional shipping routes, have played a crucial role in the recent price reduction. This linkage underscores the UAE’s responsiveness to international market dynamics and its impact on local pricing.