The UAE fuel price committee announced the petrol and diesel prices for the month of May 2024 on Tuesday.
The rates will be applicable from May 1 onwards.
Super 98 petrol will cost AED3.34 a litre, up from AED3.15 a litre in April, while Special 95 petrol will cost AED3.22 per litre, compared to AED3.03 the previous month.
E-Plus 91 petrol will cost AED3.15 a litre, compared to AED2.96 a litre, while diesel will be charged at AED3.07 a litre compared to Dh3.09 last month.
Petrol prices in the UAE have been rising from February onwards, and this is the fourth consecutive month of increase (see prices for February, March and April).
A rollercoaster month
April 2024 saw a tumultuous journey for crude oil prices. Starting the month at approximately $83.70 per barrel, prices surged in the first two weeks, reaching a peak of $87.67.
However, the latter half of April saw a correction. Prices dipped steadily, retracing some of the earlier gains. This could be due to factors like increased production from major oil-producing countries or a cooling down of global economic activity.
However, despite the recent pullback, analysts have been cautious. The underlying factors that caused the initial rise, like geopolitical tensions, haven’t necessarily disappeared. Additionally, the upcoming summer driving season in the northern hemisphere could put upward pressure on prices due to increased demand for gasoline and other refined products.
How are petrol, diesel prices determined?
Since 2015, fuel prices in the UAE 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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