The UAE fuel price committee has announced adjustments to petrol and diesel prices for the upcoming month, revealing a divergent trend in costs. While petrol prices are slated to climb, diesel prices are expected to dip.
Following the global oil market’s trajectory, petrol prices have seen successive increases since February, a trend that is set to continue into May. The latest breakdown reveals the following changes per litre:
Super 98: Dh3.34, up from Dh3.15 in April (a 6% increase)
Special 95: Dh3.22, up from Dh3.03 in April (a 6.3% increase)
E-plus 91: Dh3.15, up from Dh2.96 in April (a 6.4% increase)
On the contrary, diesel prices are set to decrease slightly, dropping from Dh3.09 in April to Dh3.07 in May (a 0.6% decrease).
The UAE transitioned to a liberalized fuel pricing system in 2015, enabling adjustments in line with global market shifts. Amidst the COVID-19 pandemic, prices were temporarily frozen in 2020, with controls lifted in March 2021.
Global oil prices have exhibited volatility in recent weeks, driven by geopolitical tensions and concerns over inflationary pressures impacting demand. Despite fluctuations, crude futures have witnessed a 15% increase this year, propelled partly by production cuts enforced by the OPEC+ coalition.
Ongoing geopolitical uncertainties, particularly in the Middle East, continue to stoke fears of potential disruptions to crude shipments, further influencing upward price movements.
Amidst these market dynamics, the US Federal Reserve faces challenges in managing inflationary pressures, with recent data indicating a higher-than-expected rise in inflation. Such developments may influence the Fed’s decisions on interest rates in the coming months, potentially impacting crude demand and prices.