In a notable shift, fuel prices in the United Arab Emirates (UAE) have decreased for the first time in five months, offering some relief to consumers as global crude oil prices have softened. This change, effective from July, aligns with an improvement in international supply conditions and reduced tensions in key geopolitical areas.
The newly adjusted prices at the pump are as follows: Super 98 is now priced at Dh3.40 per litre, down from Dh3.95; Special 95 has decreased to Dh3.29 per litre from Dh3.83; E-Plus 91 is available at Dh3.21 per litre, previously Dh3.76; and Diesel has dropped to Dh3.60 per litre from Dh4.33. This reduction is reflective of broader trends in the global oil market.
The decrease in fuel costs comes amid a decline in international crude oil benchmarks. This is largely attributed to diminishing concerns about supply disruptions in the Middle East. Recent diplomatic engagements between the United States and Iran have played a role in easing tensions, particularly around the vital Strait of Hormuz, a crucial passage for oil tankers, thereby stabilizing global energy markets.
Since 2015, the UAE has pegged its domestic fuel prices to movements in the global oil markets, allowing for adjustments in response to international trends. Analysts point out that the current decrease is supported by an upswing in global oil supplies, increased exports from key producing nations, and the normalization of regional shipping routes, all of which have contributed to the current downward adjustment in fuel prices.