Petrol prices in the UAE are set for a minor drop when rates are revised for January 2025, with fuel prices potentially adjusting downward on Tuesday.
According to market analysts, the global price of crude oil has remained relatively steady over the past month, with Brent oil averaging around $73.06 per barrel in December 2024, compared to $73.20 in November.
While this trend suggests a slight reduction in fuel prices, experts caution that a sudden fluctuation in the final days of the year could lead to an upward adjustment.
Since the UAE deregulated petrol prices in 2015, the country has adhered to a monthly revision schedule, adjusting fuel prices to reflect international market trends.
The changes, which occur on the last day of each month, aim to ensure that local petrol rates are in line with global oil prices, benefiting consumers while maintaining stability in the fuel sector.
In December 2024, the UAE saw a notable decrease in petrol prices. The cost of Super 98, Special 95, and E-Plus 91 petrol fell by approximately Dh0.13 per litre, reaching Dh2.61, Dh2.50, and Dh2.43 per litre, respectively.
December marked the lowest petrol prices of the year, providing some relief to UAE motorists. Looking back at the year’s price trends, petrol prices have fluctuated significantly due to global economic factors, including oil supply and demand shifts.
The following table outlines the UAE’s petrol prices from January to December 2024:
| Month | Super 98 | Special 95 | E-plus 91 |
|---|---|---|---|
| January | 2.82 | 2.71 | 2.64 |
| February | 2.88 | 2.76 | 2.69 |
| March | 3.03 | 2.92 | 2.85 |
| April | 3.15 | 3.03 | 2.96 |
| May | 3.34 | 3.22 | 3.15 |
| June | 3.14 | 3.02 | 2.95 |
| July | 2.99 | 2.88 | 2.80 |
| August | 3.05 | 2.93 | 2.86 |
| September | 2.90 | 2.78 | 2.71 |
| October | 2.66 | 2.54 | 2.47 |
| November | 2.74 | 2.63 | 2.55 |
| December | 2.61 | 2.50 | 2.43 |
Globally, oil prices have been largely stable, with WTI trading at $70.65 per barrel and Brent at $74 a barrel on Monday morning.
Despite this stability, analysts have expressed cautious optimism regarding the outlook for 2025.
Ipek Ozkardeskaya, senior analyst at Swissquote Bank, noted that crude oil prices are closing the year in a bearish consolidation phase, with market participants awaiting signs of stronger demand from China and a reduction in the global supply glut, which is expected to average 1 million barrels per day in 2025.
Forecasts suggest an abundant oil supply in 2025, coupled with signs of softening demand from China, which could dampen any bullish sentiment.
Maria Agustina Patti, financial markets strategist at Exness, emphasized that these factors could limit the potential for significant oil price increases in the coming year.
However, there is some optimism regarding a potential recovery in crude demand, particularly from China.
Samer Hasn, senior market analyst at xs.com, highlighted that recent support measures from the Chinese government, including a historic $3 trillion treasury bond offering and economic restructuring plans, could boost consumer spending and help revive demand.
Still, the possibility of renewed trade tensions between China and the United States under a potential second Trump administration is a factor that could weigh heavily on global oil prices in early 2025.
As the UAE prepares to adjust petrol prices for January, both consumers and industry experts will be closely monitoring global market developments, particularly any sudden shifts in oil supply and demand dynamics, which could influence the final price adjustments.