The UAE fuel price committee is set to announce the revised petrol and diesel prices for September on August 31. The new rates will come into effect starting September 1.
Currently, Super 98 petrol costs AED3.05 a liter, compared to AED2.99 a liter in July, while Special 95 petrol costs AED2.93 a liter, compared to AED2.88 the previous month.
Meanwhile, E-Plus 91 petrol costs AED2.86 a liter compared to AED2.80 a litre the previous month, while diesel costs AED2.95, compared to AED2.89 a litre in July.
Petrol prices had increased in August after dropping in June and July (see prices for February, March, April, May, June and July).
Volatile market
Several factors contributed to the volatility of the oil market in August. On the one hand were geopolitical tensions and supply-side factors. On the other hand, production cuts supported prices.
Tensions in the Middle East led to concerns of disruption in supply, which added to volatility in the market.
Concerns of a potential global economic slowdown and weak demand from key consumers such as United States and China also contributed to price volatility.
Meanwhile, continuing production cuts from Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) tightened the market and supported oil prices.
How are petrol, diesel prices determined?
Since 2015, the UAE diesel and petrol 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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