Petrol prices to go down next month

Diesel down 4.86% as oversupply in oil market pushes prices down

Diesel prices are set to be reduced by 4.86% and petrol by more than 8% |

Fuel prices have been reduced for August, the Ministry of Energy announced yesterday.

Diesel prices are set to go down by 4.86 per cent and petrol by more than 8 per cent.

This is the first time in the last five months that fuel will be cheaper in the UAE compared to the previous month as oversupply in the market reduces international oil prices.

The new per litre fuel prices are Super 98 Dh1.73, down from Dh1.88 in July; Special 95 Dh1.62, down from Dh1.77; and E Plus 91 Dh1.55, down from Dh1.70. Diesel price has been reduced from Dh1.85 per litre in July to Dh1.76 for August. The new oil prices will come into effect on August 1.

Sanyalaksna Manibandhu, director of research at National Bank of Abu Dhabi Securities, said oil prices could slide further in the short term, but will rebound due to more demand in the market. “We shouldn’t see extended slide in oil prices as fundamentals are strong with growing demand and cut in capital expenditure in oil production. We shouldn’t see a panic,” he told Gulf News.

The fuel prices are calculated based on the average global prices for diesel and petrol with the addition of operating costs and profit margins of the distributing companies in the UAE.

The Ministry of Energy liberalised fuel prices last year in July in an effort to reduce emissions and encourage people to use public transport.