As we approach the beginning of August, the United Arab Emirates Fuel Price Committee is revising retail petrol and diesel prices for the next month. The country, which implemented a fuel price deregulation policy in 2015, reviews its petrol prices monthly in response to fluctuations in global oil markets. As global oil prices have surpassed $80 a barrel over the past few weeks given recent geopolitical events, there is speculation of a price hike.
Since 2015, the UAE has followed a policy of liberalizing petrol prices in line with international market rates. The deregulation of retail petrol prices has allowed the UAE to be more responsive to market changes, align local fuel prices with international trends, and continue to diversify its economy.
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As for July, the UAE Fuel Price Committee raised prices by five fils per liter. Super 98 was selling for Dh3, Special 95 for Dh2.89, and E-Plus 91 for Dh2.81 per liter. In January of this year, Super 98 was selling for Dh2.78.
Oil prices have been on the rise globally, following announcements from several oil-producing countries that there will be a cut in production until the end of the year. Production will be cut by more than 1.6 million barrels a day. Supply disruptions and geopolitical tensions are other factors for the volatility of global oil prices.
Furthermore, as the global economy shows signs of improvement, oil prices push higher with positive economic sentiment. Globally, oil prices increases by around $10 over the past month.
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