In a significant development for motorists, fuel prices in the United Arab Emirates have dropped for the first time in five months, as of July. This reduction comes as a result of declining global crude oil prices, which have eased due to improved supply conditions worldwide.
The new pricing for fuel at the pump is as follows: Super 98 petrol is now priced at Dh3.40 per litre, down from Dh3.95. Special 95 petrol is reduced to Dh3.29 per litre from Dh3.83. E-Plus 91 petrol sees a decrease to Dh3.21 per litre from Dh3.76, and diesel now costs Dh3.60 per litre, down from Dh4.33.
The price cuts are largely attributed to a decrease in international crude oil benchmarks. This decline is partly due to a reduction in concerns over potential supply disruptions in the Middle East. Diplomatic progress, particularly involving the United States and Iran, has played a role in stabilizing tensions, and improved shipping routes through the Strait of Hormuz have further bolstered global energy market stability.
The UAE has been adjusting its domestic fuel prices in alignment with global oil market trends since 2015. Analysts indicate that the latest price decrease is a result of increased oil supplies globally, higher export levels from key producers, and the revitalization of shipping pathways in the region. These factors combined have contributed to the current reduction in fuel costs.