Current state of petrol price in UAE
Fuel prices vary considerably from country to country. For example, in some oil-producing countries the cost of petrol can be less than $1 a liter, while in European countries the cost per litre of petrol can be more than $2.
Since oil was discovered in the UAE in the 1960s, the country has transformed from a poor region to a rich modern state with a high standard of living. In addition, with increasing efforts to diversify economically, the UAE’s share of oil and gas revenues is only 25 per cent. Meanwhile, the UAE is considered the eighth largest oil producer in the world.
Given that fuel prices in the UAE tend to fluctuate in line with global trends, we could well see a rate cut. The price of oil fell steadily in March, with Brent crude futures falling to $75.32 (from $84.31 in February) and West Texas Intermediate crude falling to $69.33 (down from $77.05). The fall of almost $10 is almost AED 37 a barrel.
This follows changes in March which led to a slight increase in petrol prices and a slight fall in diesel prices. The current prices are as follows:
- Super 98 petrol costs AED 3.09 per liter, up from AED 3.05 in February.
- Special 95 petrol costs AED 2.97 per liter compared to AED 2.93 in February.
- E-Plus 91 petrol costs AED 2.90 per liter compared to AED 2.86 in February.
- Diesel costs AED 3.14 per liter compared to AED 3.38 in February.
What factors are influencing the petrol price in UAE
The United Arab Emirates is among the top countries that determine global oil prices. Until 2015, petrol in the UAE was one of the cheapest in the Middle East. Then the oil market situation changed, causing diesel and petrol prices to rise in the country. This has been the situation for several years. The increase was part of the government policy pursued by the UAE authorities to deregulate petrol prices.
In addition to developing deregulation measures, the country’s leadership has gone as far as to establish a special Fuel Committee under the Ministry of Energy. The new body, which is based in Dubai, includes representatives of fuel companies.
The committee has been required since 2016 to monitor the global market prices of oil, petrol and diesel to set a new price for petrol on a monthly basis. Consequently, petrol in Dubai, Abu Dhabi and Sharjah has gone up or down in price every month.
This is not just a whim of the Fuel Committee and the UAE government, but also an analysis of global price trends for various petroleum products, oil and hydrocarbons.
Quite often, there are large queues of motorists at the country’s petrol stations, including in 2023. The rush took place in the days when the government was signing the petrol price reduction document. That is why many drivers fill up their tank, drive away to empty the fuel and queue up again at the petrol station.
The head of the Fuel Committee attributed the price hikes to the following factors:
- The International Monetary Fund has been pushing for years for Emirates to reduce subsidies to the fuel sector.
- This was to encourage other OPEC and Middle Eastern countries to develop deregulation policies.
- A small increase in fuel prices should have had a positive impact on the development of rational approaches to petrol consumption.
- Drivers would be able to switch to more fuel-efficient cars, driving which would reduce emissions, improve the environment and reduce traffic on the roads.
Experts say lower fuel prices in the UAE will have a positive impact on the country’s lower cost of living, as well as reducing food costs.
People also read: Gulf Brokers Ltd. Review-Free demo account
Possibility of a petrol price drop in UAE
A strong economy is the main secret to the UAE’s prosperity and high level of development. An efficient economic system has brought the Emirates to a new level and has overtaken the European countries by several steps.
Today, the United Arab Emirates is one of the richest and fastest developing countries in the world. The government of the UAE has succeeded in achieving the unbelievable economic heights that the whole world is talking about. Renowned magazines and newspapers are actively monitoring new trends in the Emirates’ economic system and foreign entrepreneurs have already made a plan for themselves to profit from the state’s economy.
The key objective of the government of the United Arab Emirates is to overcome oil dependence. The strategic plans for the next few years are to further diversify the economy by developing tourism, financial and other services, and by further developing infrastructure.
In the United Arab Emirates, the price of petrol has rarely reached $1. The price of petrol in the United Arab Emirates has rarely been under USD 1 since the sixties, when oil was first found in the country.
The cost of petrol in Dubai is much lower than in other cities in the country and around the world. Experts attribute the different taxes and subsidies on petrol, exports and oil production.
Good to know:
Dubai’s petrol prices are so low that foreigners who come to work in the UAE prefer to buy a car rather than use public transport. It’s not a problem to buy a car, you just need to have an international driving license to drive in the UAE.
The fact that petrol prices will fall is difficult to predict. As we described above, many factors influence the price, including the business stability and stability in the whole world. But nevertheless, all the preconditions for lowering the price of petrol exist, and we will observe the situation.
Continue reading: Review of competing broker ZETANO
Check out our partner website forex-mag.com.