In a significant development for consumers in the United Arab Emirates, fuel prices have seen a reduction in July, marking the first decrease in five months. This adjustment comes as global crude oil prices have softened due to better supply conditions worldwide.
The new fuel prices are as follows: Super 98 petrol now costs Dh3.40 per litre, down from Dh3.95. Special 95 petrol is priced at Dh3.29 per litre, reduced from Dh3.83. E-Plus 91 is Dh3.21 per litre, down from Dh3.76, and diesel is now Dh3.60 per litre, a decrease from Dh4.33.
This drop in prices can be attributed to a decline in international crude oil benchmarks. Concerns over potential supply disruptions in the Middle East have lessened, thanks to diplomatic progress involving the United States and Iran. Additionally, the improved shipping conditions through the Strait of Hormuz have played a role in stabilizing global energy markets.
Since 2015, the UAE has pegged its domestic fuel prices to global oil market trends. Analysts suggest that the current reduction in fuel prices is a result of increased global oil supplies, higher exports from major producers, and the reopening of regional shipping routes.