Petrol prices in the UAE are projected to increase in August, driven by higher global oil rates in July. On average, oil prices were around $84 per barrel in July, up from $82.6 per barrel in June.
Brent crude traded above $85 per barrel during the first half of July before falling to $79.77 per barrel later in the month.
In early July, oil prices surged past $87 per barrel, reaching their highest level since April on July 4, largely due to a decline in US oil inventories. Prices then eased to $81.56 per barrel by July 19.
This upward trend was also fueled by increased demand during the Northern Hemisphere’s summer driving season and concerns about potential conflicts in the Middle East affecting global oil supplies.
The UAE’s Fuel Price Committee, which aligns local petrol prices with global rates, adjusts these prices at the end of each month. In July, petrol prices in the UAE were reduced by approximately 14-15 fils per litre. This set the price for Super 98 at Dh2.99, Special 95 at Dh2.88, and E-Plus 91 at Dh2.80 per litre.
The prospect of rising fuel prices is a significant concern for residents who commute long distances for work, as well as for freight and logistics companies.
Vijay Valecha, Chief Investment Officer at Century Financial, noted that escalating tensions in the Middle East could further impact crude oil supplies, potentially driving prices higher. He also mentioned that market anticipation is focused on the upcoming US Federal Reserve meeting, with expectations that interest rates will be held steady for now but might be reduced in September.
