Fuel prices in the UAE are about to rise to a two-year high in October, with both petrol and diesel becoming more expensive by over 10 fils a litre
The Ministry of Energy announced a hike of more than 5 percent for both petrol and diesel, which reflects the global surge in crude oil prices.
The new domestic fuel prices, which will be the highest since September of 2015, are effective from October 1.
The price per litre of Super 98 will rise to Dh2.12 from Dh2.01 this month (up 5.47 percent); Special 95 at Dh2.01 from Dh1.90 (up 5.79 percent); E Plus-91 at Dh1.94 from Dh1.83 (up 6.01 percent).
The October price for diesel has been raised to Dh2.10 per litre from Dh2 per litre this month.
The biggest increase in fuel prices in the UAE was in August 2015, when, for instance, the price for Super 98 was set at Dh2.25, up from Dh1.86 in July, nearly 21 percent increase.
This week, the global benchmark Brent was trading at $57.70 per barrel, while West Texas Intermediate was trading at $52.42 per barrel.
Analysts are saying that the production cutback by Opec and its partners, by nearly 1.8 million barrels per day since the start of 2017, has helped lift oil prices by about 15 percent in the past three months.
“With a rising demand for oil due to steady global economic growth, an increase in geo-political tensions (including the Kurdish independence referendum), along with the increasing speculation of OPEC’s production extension, the oil prices have had a strong tailwind in recent days,” Mihir Kapadia, CEO and Founder of Sun Global Investments, has said.
While the commodity has gained a strong foothold between the $52-55 mark currently and is now rising towards $59 per barrel. This is only an indicator of the confidence in the commodity, achieved after the Opec production cutback strategy which is rebalancing the markets.
After almost nine months after the production cuts came into place, the commodity has been pulled up steadily in the last couple of months.