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UAE: Petrol prices set to decline in August

Prices of petrol are set to fall around the United Arab Emirates in August in spite of sustained high global oil prices.

Prices of petrol are set to fall around the United Arab Emirates in August in spite of sustained high global oil prices.

Motorists have witnessed a major increase at the pumps in the last few months, including a 16% rise in April, a 13% increase in June and an 11% rise in July. 

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The breakdown cost per litre for August will be as follows: 

• Super 98: Dh4.03 — dropping from Dh4.63 in July (a fall of 13%)

• Special 95: Dh3.92 — reducing from Dh4.52 in July (a fall of 13%)

• Diesel: Dh4.14 — declining from Dh4.76 in July (a fall of 13%)

• E-plus 91: Dh3.84 — decreasing from Dh4.44 in July (a fall of 13.5%)

The cost announced by the Fuel Price Committee of the UAE in July was the highest so far since 2015, when they were liberalised to enable them to move in line with the market. 

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Earlier, in 2020, prices were frozen by the Fuel Price Committee after the start of the COVID-19 pandemic. 

The controls were then removed in March 2021 to reflect the market’s movement. 

The increase in fuel prices in the Emirates has led to some motorists to look for alternative modes of transport. 

Around 52% of UAE residents are thinking to switch to hybrid or electric vehicles, found a survey by Audi Abu Dhabi in May. 

While worldwide oil prices have given up most of the gains reported after Ukraine’s invasion by Russia during late February, Brent, the worldwide benchmark for 2/3rd of the world’s oil, is still up more than 35% in 2022. 

Brent settled 2.1% higher at $103.97 per barrel at the close on Friday, July 29. 

The gauge that tracks US crude, West Texas Intermediate, ended up 2.3% at $98.62 per barrel.

The next meeting of the Opec (Organisation of the Petroleum Exporting Countries) and allied led by Russia, jointly called Opec+ to take place on Wednesday, August 3. 

 

Tariq Saeed

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