After consecutive hikes pushed petrol prices near four-year highs in June, international market shifts hint at lower rates for July.
DUBAI: Motorists in the United Arab Emirates are likely to see welcome relief at the pumps next month, with global market indicators pointing toward a reduction in domestic fuel prices for July. The anticipated drop follows recent stabilization and downward corrections in international crude oil benchmarks, providing a much-needed breather to residents who faced sharp fuel hikes in preceding months.
The UAE Fuel Price Committee, which adjusts retail rates at the end of every month, is expected to factor in the cooling global oil prices for its upcoming announcement. Throughout April, May, and June, retail petrol rates across the Emirates climbed significantly due to regional geopolitical tensions and shipping disruptions. However, market experts note that crude supply concerns have eased slightly over the last few weeks, causing international benchmarks like Brent crude to retreat from their recent peaks.
Currently, under the June price structure, petrol rates are at their highest level since late 2022. Super 98 is priced at AED 3.95 per litre, Special 95 stands at AED 3.83 per litre, and E-Plus 91 is retailing at AED 3.76 per litre. Conversely, diesel was the only fuel type to see a price cut in June, dropping to AED 4.33 per litre. If the current downward trend in the global market holds steady, economists predict that petrol prices could witness a visible reduction, directly easing household and commuting budgets as the peak summer travel season begins.
The UAE liberalized its fuel pricing mechanism in August 2015, transitioning from a government-subsidized model to a market-linked system. Under this framework, the Fuel Price Committee tracks global crude averages, refining metrics, and operational expenses to compute local retail prices each month. This policy ensures alignment with international energy dynamics, making UAE pump prices highly responsive to shifting global supply and demand variables.
An official announcement detailing the exact prices per litre for Super 98, Special 95, E-Plus 91, and Diesel for the month of July will be released by the UAE Fuel Price Committee on the final day of this month.
