In a significant move, the United Arab Emirates (UAE) has witnessed a third consecutive month of petrol price reduction, aligning local retail fuel rates for January 2024 nearly with the lowest levels seen in a year.
The Fuel Price Committee’s decision to slash petrol prices by 14 fils, or 4.8 per cent, per litre for the upcoming month reflects a commitment to providing relief to consumers.
As of January 2024, Super 98, Special 95, and E-Plus 91 will be priced at Dh2.82, Dh2.71, and Dh2.64 per litre, respectively. These figures are strikingly close to January 2023 rates, which stood at Dh2.78, Dh2.67, and Dh2.59 per litre for the three variants.
The move indicates a deliberate effort to bring petrol prices back to a level reminiscent of the beginning of the previous year.
In 2023, the lowest petrol prices were recorded in January, reaching a peak in October when Super 98 touched Dh3.44 per litre.
Despite this peak, the rates remained notably lower than the previous year’s all-time high, which soared to over Dh4 a litre in the aftermath of the Russia-Ukraine war that unfolded in early 2022.
The UAE’s decision to reduce petrol prices comes against the backdrop of global oil price fluctuations. Since the deregulation of oil prices in 2015, the country has adopted a monthly revision strategy, aligning local retail petrol prices with the dynamic trends in the global market.
This approach ensures a responsive and flexible pricing mechanism that reflects the changing dynamics of the oil sector.
The recent drop in petrol prices is attributed to a global decline in oil prices by approximately $5 a barrel in December. The Brent price, a key benchmark, averaged $77.34 in December 2023.
This marks a noticeable decrease compared to the preceding month, November 2023, when Brent averaged around $82 a barrel.
The move by the Fuel Price Committee underscores the UAE’s commitment to balancing the economic interests of its citizens and residents.
By passing on the benefits of reduced global oil prices to consumers, the government aims to alleviate the financial burden on individuals and businesses relying on petrol for daily activities.
This strategic decision aligns with the UAE’s broader economic vision, emphasizing sustainability and resilience.
The country seeks to navigate the challenges of the ever-changing global oil market by maintaining a responsive approach to petrol pricing.
The move is not merely a short-term measure but reflects a long-term commitment to ensuring stability in the energy sector.
As the UAE sets the stage for a promising start to 2024, the reduction in petrol prices is likely to be welcomed by citizens and businesses alike.
It puts more money back into consumers’ pockets and contributes to a favourable economic environment. The UAE’s ability to adapt and respond to global economic trends positions it as a dynamic player in the ever-evolving energy market landscape.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members