UAE petrol prices to fall further in July

Motorists in the Emirates will pay less at the pump

The price of petrol in the UAE has come down, but diesel will cost a little more. Pawan Singh / The National

Fuel prices in the Emirates will decrease for the second month in July, reflecting trends in the global oil market.

The prices for petrol have been cut, while diesel has gone up slightly, Wam reported on Sunday, quoting the UAE fuel price committee.

How much will fuel cost in July?

The breakdown of fuel prices for a litre for July is as follows:

• Super 98: Dh2.99, from Dh3.14 in June (down by 4.8 per cent)

• Special 95: Dh2.88, from Dh3.02 in June (down by 4.6 per cent)

• Diesel: Dh2.89, from Dh2.88 in June (up by 0.3 per cent)

• E-plus 91: Dh2.80, from Dh2.95 in June (down by 5.1 per cent)

The UAE liberalised fuel prices in 2015 to allow them to move in line with the market.

Oil prices recorded a third weekly gain in a row on Friday amid hopes that the US Federal Reserve will begin long-awaited interest rate cuts, which could stimulate the world's biggest economy and boost demand for crude.

Brent, the benchmark for two thirds of the world’s oil, settled 0.02 per cent higher at $86.41 a barrel. West Texas Intermediate, the gauge that tracks US crude, shed 0.24 per cent to close at $81.54.

Both benchmarks are on track to post a monthly gain of more than 6 per cent to pull back from May's losses. In the year to date, Brent has jumped 12.8 per cent, while WTI has surged nearly 15 per cent.

“Brent oil remains in a tight $84 to $86 a barrel range but looks primed to challenge $90 in the third quarter as the market mood music gravitationally turns constructive, underscored by fundamentals mired in deficit,” said Ehsan Khoman, head of commodities, ESG and emerging markets research at MUFG.

Brent is supported by “robust” summer travel demand in the US, jet fuel consumption reaching a post-pandemic high, and continuing geopolitical supply-side tensions, Mr Khoman said in a research note on Thursday.

In May, the International Energy Agency lowered its oil demand growth forecast for this year by 140,000 barrels per day to 1.1 million bpd, citing weak demand in developed countries.

However, Opec has projected a 2.2 million bpd increase in oil demand for 2024, citing robust consumption in China and India.