Increase in petrol prices and decrease in diesel prices set for September in the UAE

The global oil market has experienced significant volatility since the beginning of 2022, with prices showing a second weekly gain due to Russian crude supply uncertainty amid the intensifying war with Ukraine.

OPEC+, which has been steadily increasing output since April this year as it focuses on regaining market share, agreed to increase its oil production by 547,000 barrels per day for September. This decision was made amidst the ongoing conflict between Russia and Ukraine, which has resulted in damage to a Russian oil refinery.

In the UAE, fuel prices are deregulated and follow movements in the global oil market. As a result, residents can expect a marginal increase in the cost of petrol and diesel in September 2022.

Specifically, Super 98 and Special 95 petrol will cost Dh2.70 and Dh2.58 per litre respectively, while E-Plus 91 petrol will be priced at Dh2.51 per litre. Diesel, on the other hand, will cost Dh2.66 per litre.

The decrease in diesel prices is somewhat offset by the increase in petrol prices, but overall, the UAE is set to see a slight increase in fuel costs in September.

Meanwhile, the US has doubled its tariffs on India as punishment for its imports of discounted Russian oil, taking the total levy on the import of goods from the south Asian nation to 50%. This move is expected to have a ripple effect on global oil prices.

Vivek Dhar, an analyst at Commonwealth Bank of Australia commodities, forecasts Brent oil futures falling to $63 per barrel in the fourth quarter of 2022. This forecast suggests continued oversupply pressure on oil prices, which may further impact fuel costs in the UAE and beyond.

On the other hand, the recent increase in OPEC+ production and the ongoing conflict in Ukraine could lead to further price fluctuations in the global oil market. As such, it is important for consumers to stay informed and budget accordingly.

OPEC+ member countries are scheduled to hold a meeting on September 7 to decide their future production policy. The outcome of this meeting could have a significant impact on fuel prices in the UAE and around the world.

In conclusion, while the global oil market remains volatile, residents of the UAE can expect to see a slight increase in fuel costs in September 2022. It is important for consumers to stay informed and budget accordingly, as the market outlook suggests continued oversupply pressure on oil prices.

Increase in petrol prices and decrease in diesel prices set for September in the UAE