Petrol to become cheaper

THIS IS THE FOURTH DECREASE IN RATES FOR PETROL THIS YEAR

New per-litre prices will be Dh2.03 for Super 98; Dh1.92 for Special 95 and Dh1.85 for E Plus 91 |

T here has been a slight increase in diesel prices for the month of November, whereas petrol prices dropped by 4 per cent, ministry of energy announced yesterday.

The new per-litre prices are Super 98 at Dh2.03, down from Dh2.12 in October; Special 95 at Dh1.92, down from Dh2.01; E Plus-91 at Dh1.85, down from Dh1.94.

And diesel price has gone up from Dh2.10 per litre in October to Dh2.11 in November.

This is the fourth decrease in rates for the fuel prices this year after the Ministry of Energy reduced prices in April, June and July in line with the international crude oil prices which have been fluctuating due to supply-demand equation.

The global benchmark Brent surged to $60 (Dh220.38) a barrel for the first time in more than two years due to expectations that major oil producers will extend their output-cap agreement well into 2018 with leading Opec member Saudi Arabia firmly backing the extension of the deal.

At a major investment conference in Riyadh last week, Saudi Crown Prince Mohammad Bin Salman said the deal reached between Opec and non-Opec members to cut production by about 1.8 million barrels per day helped in rebalancing of oil markets.

“While prices have stabilised at higher levels with the WTI [West Texas Intermediate] above $52 per barrel, such price levels are likely to result in increased shale supply in the US and prices are going to find it hard to sustain further upward momentum without fresh triggers,” said Mihir Kapadia, CEO and Founder of Sun Global Investments in London.

The fuel prices are calculated based on the average global oil prices with the addition of operating costs and profit margins of the distributing companies in the UAE. The system was introduced in July 2015.

While prices have stabilised at higher levels with the WTI above $52 per barrel, such price levels are likely to result in increased shale supply in the US and prices are going to find it hard to sustain further upward momentum without fresh triggers.” Mihir Kapadia | CEO and Founder of Sun Global Investments