The UAE fuel price committee announced the petrol and diesel prices for the month of August 2024 on Wednesday.
The rates will be applicable from August 1 onwards.
Super 98 petrol will cost AED3.05 a liter, compared to AED2.99 a liter in July, while Special 95 petrol will cost AED2.93 a liter, compared to AED2.88 the previous month.
E-Plus 91 petrol will cost AED2.86 a liter compared to AED2.80 a litre, while diesel will cost AED2.95, compared to AED2.89 a litre the previous month.
Petrol prices have increased in August after dropping in June and July (see prices for February, March, April, May, June and July).
Read: Entrances to Dubai’s Mall of the Emirates set to improve
Oil prices near two-month lows
Oil prices fell to a near two-month low on Tuesday. This was due to a lack of immediate escalation in tensions in the Middle East, leading traders to price out a risk premium from the prices.
However, oil prices rose sharply on Wednesday, climbing back from recent multi-week lows. The gains came as industry data showed a fifth straight week of sizable drawdowns in U.S. crude inventories, a sign of a tightening market in the world’s largest fuel consumer.
Earlier, caution ahead of a meeting of the Organization of Petroleum Exporting Countries (OPEC) weighed on market sentiment. However, the recent weakness in crude oil prices is likely to see the cartel downplay any plans for scaling back production cuts.
Anticipation of key central bank meetings this week, including the Federal Reserve, kept oil prices on the backfoot. Persistent concerns over slowing demand, especially in top importer China, also continued to dampen market sentiment.
How are petrol, diesel prices determined?
Since 2015, the UAE petrol and diesel prices have been moving in line with the international markets.
Prices are determined by the fuel price committee, chaired by the undersecretary of the Ministry of Energy.
The committee includes members of the energy and finance ministries, as well as CEOs of Adnoc Distribution and Emirates National Oil Company.
The committee, when deciding the fuel pieces, does not rely on just one global market. It considers an average of global prices as well as operating costs of distribution companies.
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