UAE petrol and diesel prices to hit two-year low in October

Fuel prices in the Emirates will fall in October to levels last seen in January 2022, reflecting trends in the global oil market, it has been announced.

The prices for both petrol and diesel have been reduced, state news agency Wam reported on Monday, quoting the UAE fuel price committee.

This is the second consecutive month that petrol prices have declined. So far this year, the UAE has lowered petrol prices six times and raised them four times.

How much will fuel cost in October?

The breakdown of fuel prices per litre for October is as follows:

• Super 98: Dh2.66 from Dh2.90 in September (down by 8.3 per cent)

• Special 95: Dh2.54 from Dh2.78 in September (down by 8.6 per cent)

• Diesel: Dh2.60 from Dh2.78 in September (down by 6.5 per cent)

• E-plus 91: Dh2.47 from Dh2.71 in September (down by 8.9 per cent)

The UAE liberalised fuel prices in 2015 to allow them to move in line with the market.

In 2020, prices were frozen by the Fuel Price Committee after the onset of the coronavirus pandemic. The controls were removed in March 2021 to reflect the movement of the market once again.

Oil prices fell over the past week amid expectations of an increase in crude supply from Saudi Arabia and Libya. Crude prices slid more than 2 per cent last Thursday after it was reported that Saudi Arabia, the world's biggest oil-exporting country, plans to increase its oil production.

Officials in the kingdom were said to be “committed to bringing back that production as planned on December 1, even if it leads to a prolonged period of lower prices”, the Financial Times reported, quoting officials.

Saudi Arabia and seven other Opec+ members were prepared to ease voluntary production cuts of 2.2 million barrels per day starting next month. However, the supply curbs were extended until the end of November amid a drop in crude prices and slumping global demand.

The oil market also continues to struggle with China's economic situation, as the world's second-largest importer of crude continues to face headwinds on the back of weak oil demand and a tepid manufacturing sector.

Last week, China unveiled its most aggressive stimulus package since the Covid-19 pandemic, offering more interest rate cuts and funding, especially for its spiralling real estate market, in a bid to boost the world's second-largest economy.

Brent, the benchmark for two thirds of the world's oil, was trading 0.63 per cent higher at $72.43 a barrel at 10.03am UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was up 0.67 per cent at $68.64 a barrel.