Brent crude rally and climbing marine shipping freights put upward pressure on domestic retail petrol and diesel rates ahead of the monthly price committee review.
DUBAI : Motorists across the United Arab Emirates could see pump prices climb again in November, with international crude benchmarks touching multi-month highs and surging maritime shipping costs filtering through to refined product markets.
The UAE Fuel Price Committee will convene in the final days of October to establish retail rates for November, operating under the market-deregulation policy adopted in August 2015. With global crude benchmarks showing persistent strength throughout the month, energy analysts expect upward pressure on the upcoming tariff schedule across Super 98, Special 95, E-Plus 91, and diesel.
International benchmark Brent crude pushed past $110 a barrel this week, touching $110.86 during midweek exchanges. West Texas Intermediate hovered near the threshold of triple digits, trading at $99.97 a barrel. Energy traders attribute the run-up to geopolitical friction along critical maritime export channels in the Middle East, which has offset signs of steady supply volumes from Gulf exporters.
The crude rally coincides with a steep rise in global tanker freight rates. Elevated marine insurance premiums and rerouted cargo itineraries have inflated the landing cost of refined petroleum products worldwide, creating a secondary cost layer beyond raw crude quotations.
The pricing committee’s mandate links domestic retail costs directly to an average of international benchmark prices rather than single-day market swings. Revisions incorporate shipping logistics, insurance premiums, and distribution margins alongside the monthly average price of refined fuels.
Consumers enter the upcoming review cycle following substantial upward adjustments in October, when retail rates rose by nearly 16 percent across all three petrol grades. That earlier adjustment had already pushed premium grades past the Dh4-per-litre threshold, tightening operating margins for logistics firms and raising monthly expenditures for daily commuters.
Fuel retailers—including ADNOC Distribution, Emarat, and ENOC—implement the committee’s adjusted rates on the first day of each calendar month across service stations nationwide. Any sustained pricing above Dh4 per litre through November would maintain the highest domestic fuel expenditures recorded since mid-2022, when crude volatility following regional conflicts prompted historic peaks at local filling stations.
Economists note that sustained fuel costs typically feed into broader transport, delivery, and cold-chain logistics pricing across the country. Commercial fleet operators have already begun hedging mileage routes and incorporating transport surcharges into corporate contracts to protect bottom lines.
The committee will publish the official tariff table for November on October 31, with new prices taking effect at 12:01 a.m. on November 1.
