UAE Petrol price is likely to rise in February 2025 due to increasing global oil prices. In January, Brent crude surpassed $81 per barrel, driven by global factors, including US sanctions on Russian crude exports. Additionally, uncertainties around the outgoing administration of President Donald Trump’s tariff policies contributed to price fluctuations.
Moreover, Brent crude averaged $77.55 per barrel in January, higher than $73 in December 2024. This price increase suggests a potential hike in local fuel rates.
Currently, UAE petrol prices remain unchanged since December 2024. As of January, Super 98 was priced at Dh2.61 per litre, Special 95 at Dh2.50, and E-Plus at Dh2.43. Diesel stood at Dh2.68 per litre. Notably, these rates were the lowest recorded in the past year.
Since the deregulation of fuel prices in 2015, the UAE has been announcing monthly rates to align with global trends. Typically, announcements are made at the end of each month.
As of Wednesday afternoon, WTI crude was trading at $73.99 per barrel, up 0.3%, while Brent rose by 0.17% to $77.62 per barrel.
Reason behind UAE petrol price increase
Meanwhile, Vijay Valecha, Chief Investment Officer at Century Financial, emphasized Brent’s rise above $81 as its highest point in over four months. He explained that recent US Treasury sanctions on Russian oil producers, including Gazprom Neft and Surgutneftegas, as well as 183 crude-carrying vessels, have disrupted exports significantly.
“These sanctions are pushing China and India to source crude from the Middle East, Africa, and the Americas. As a result, global oil prices and shipping costs are expected to increase,” Valecha stated.
Furthermore, RBC Capital analysts stressed that these new sanctions add uncertainty to the global oil supply for the first quarter of 2025.
Considering ongoing geopolitical tensions and changing global oil dynamics, UAE petrol prices are expected to reflect these fluctuations. Therefore, motorists should monitor official announcements as the month-end approaches.
