The UAE fuel price committee announced petrol and diesel prices for the month of October 2024 on Monday.
The new rates will be applicable from October 1.
Super 98 petrol will cost AED2.66 per liter, compared to AED2.90 a liter in September. Meanwhile, Special 95 petrol will cost AED2.54 per liter, down from AED2.78 the previous month.
E-Plus 91 petrol will cost AED2.47 per liter, compared to AED2.71 a liter in September, while diesel will cost AED2.60 per litre vs AED2.78 in September.
Petrol prices have reduced in September and October after increasing in August.
Volatile September
September was a volatile month for oil prices. The supply disruptions in Libya and falling inventories supported prices. At the same time, weak demand from China and the prospects of increased OPEC+ production weighed them down.
The ouster of the Libyan central bank governor in late August had sparked protests, leading to a shutdown of oil production in several locations. As a result, oil production plummeted from around 1.2 million barrels per day to less than 450,000 barrels per day. This significant reduction in supply had a direct impact on global oil markets, contributing to price volatility.
China is the world’s largest oil importer. As the country showed signs of slowing economic growth, it dampened the demand for oil.
Prices began the month on a strong note, but as the month progressed, concerns about global economic growth and a potential increase in OPEC+ production pushed prices lower. By the end of September, prices had settled near $74 per barrel, a significant decline from earlier highs.
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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