No change in petrol prices next month

CONCERNS OF SUPPLY DISRUPTIONS IN REGION WEIGH ON PRICES

Diesel cheaper by 3 fils as concerns of supply disruptions in region weigh on prices

Petrol prices will remain unchanged for the month of April whereas the diesel price will be down by 3 fils, according to an announcement by the distribution companies in the UAE.

In March, fuel prices came down from February.

Fuel prices are linked to international oil prices which are trending higher compared to last few months due to an agreement between Opec (Organisation of Petroleum Exporting Countries) and non-Opec members to cut production by about 1.8 million barrels per day and tensions in the Middle East.

However, the surge in US shale oil production is expected to keep a lid on oil prices.

Global benchmark Brent was trading at $69.96 a barrel at around 4pm UAE time and US crude West Texas Intermediate at $64.81 per barrel.

“The immediate outlook looks promising for the commodity, especially over the tensions in the Middle East. Concerns that the tensions in the region could lead to supply disruptions have helped push the prices upwards, with oil prices rising 7 per cent so far this month and by 5.3 per cent in the first three months of the year,” Mihir Kapadia, CEO of Sun Global Investments in London, told Gulf News.

“While the immediate term looks stable, there are still concerns about non-Opec players disrupting the current status quo, especially as America gears up to become the world’s largest oil producer by the end of the year.”

The Ministry of Energy liberalised fuel prices in July 2015 in an effort to reduce emissions and encourage people to use public transport.

A fuel price committee consisting of members from the Ministry of Energy and UAE distribution companies determines the prices every month.