UAE petrol and diesel prices to rise in August

Motorists in the Emirates will pay more at the pump next month

An Enoc petrol station in Dubai. The cost of fuel will increase in August. Razan Alzayani / The National

Fuel prices in the Emirates will rise in August after two months of declines, reflecting trends in the global oil market.

The prices for both petrol and diesel have been raised for next month, state news agency Wam reported on Wednesday, quoting the UAE fuel price committee.

How much will fuel cost in August?

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

• Super 98: Dh3.05 from Dh2.99 in July (up by 2 per cent)

• Special 95: Dh2.93 from Dh2.88 in July (up by 1.7 per cent)

• Diesel: Dh2.95 from Dh2.89 in July (up by 2.1 per cent)

• E-plus 91: Dh2.86 from Dh2.80 in July (up by 2.1 per cent)

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

Crude prices surged on Wednesday on concerns that the killing of Hamas leader Ismail Haniyeh in Tehran could cause a wider regional conflict.

Prices increased from a seven-week low, the first in four trading sessions. The Hamas political chief and one of his bodyguards were killed in their residence in Tehran, Iran's Islamic Revolutionary Guard Corps said.

Brent, the benchmark for two thirds of the world’s oil, was up 1.88 per cent at $80.11 per barrel at 10.50am UAE time. West Texas Intermediate, the gauge that tracks US crude, climbed 2.1 per cent to $76.30 a barrel.

But prices are on track in July to record the biggest monthly loss since 2023, amid concerns about China's demand outlook and expectations that the Opec+ alliance will stick to its current output policy.

The producer alliance, which is expected to hold an online meeting on Thursday, will start unwinding production curbs of 2.2 million barrels per day in October.

In June, Opec+ agreed to extend output cuts of 3.66 million bpd until the end of 2025. They were initially planned to end this year.

At the same time, the additional 2.2 million bpd voluntary production cuts of eight Opec+ member states were extended by three months until the end of September.

The group also released a plan for gradually unwinding the voluntary curbs on a monthly basis from October 2024 until September 2025, but said “the monthly increases can be paused or reversed subject to market conditions”.