Petrol prices in the UAE have seen a significant reduction, now standing at over 40% cheaper compared to the global average. This marks the first decrease in retail fuel prices in the past four months, providing welcome relief to motorists across the country.
The UAE’s Fuel Price Committee has implemented a reduction of around 12% in retail petrol prices for the month of November. This adjustment brings the costs of the three variants – Super 98, Special 95, and E-plus 91 – to AED3.03, AED2.92, and AED2.85 per litre, respectively. These prices represent some of the lowest levels seen over the past four months.
According to data from globalpetrolprices.com, the average global price of 95-octane petrol (equivalent to Special 95 in the UAE) is AED4.91, making November’s price of AED2.92 notably cheaper, at a reduction of 40.5%.
Petrol and diesel prices play pivotal roles in containing inflation within the country, with housing, transportation, food and beverage, and education being major contributing factors. Transport alone accounts for nearly 13% of the total inflation weightage, according to Trading Economics.
Since 2015, the UAE has been adjusting monthly retail fuel prices as part of its deregulation policy to align rates with the global market. As of Tuesday afternoon, WTI and Brent crude oils were trading at $82.64 and $88.06 per barrel, respectively.
The World Bank recently projected that oil prices will average $90 a barrel in the fourth quarter of this year but are anticipated to fall to $81 next year. However, the institution also issued a warning that the Palestine-Israel conflict could lead to unprecedented shifts in global commodity markets, potentially driving oil prices up to as high as $157 a barrel in the event of a major disruption to global supply due to the Middle East crisis.
Table of Petrol Prices (per litre) in UAE for November 2023:
| Fuel Variant | Price (in Dh) |
|---|---|
| Super 98 | 3.03 |
| Special 95 | 2.92 |
| E-plus 91 | 2.85 |
