Be prepared to pay more for fuel in June

Ministry increases cost of petrol, diesel by around 6% due to good demand, lower supply

Fuel will become costlier in the UAE by around 6 per cent next month, according to an announcement made by the Ministry of Energy yesterday.

The new per litre fuel prices for June are: Super 98 — Dh2.63, up from Dh2.49 in May; Special 95 — Dh2.51, up from Dh2.37; E Plus 91 — Dh2.44, up from Dh2.30.

Diesel price has been increased to Dh2.71 per litre from Dh2.56 in May.

Fuel prices have gone up due to various factors including healthy demand, production agreement between Opec (Organisation of Petroleum Exporting Countries) and nonOpec members and geopolitical tensions in the Middle East.

The decision by the US President Donald Trump to pull out of Iran nuclear deal also bolstered oil prices in recent times.

Brent declines

Brent, the global benchmark was trading at $75.30 per barrel, down by 1.49 per cent and US crude West Texas Intermediate $66.68 per barrel, down by 1.77 per cent at 2.46pm UAE time.

Oil prices fell in the last few days as Saudi Arabia and Russia discussed about increasing oil production to ease concerns that prices have risen too much.

Opec and non-Opec members are currently cutting production by about 1.8 million barrels per day to help lower global oil inventories and prop up oil prices.

According to analysts, oil producing countries participating in the output cut agreement are expected to relax supply curbs when they meet in Vienna on June 22 as part of the Opec meeting.

“Opec and its non-Opec allies will be forced to increase output in order to prevent the market overtightening and prices overshooting,” Stephen Brennock, a London-based analyst from brokerage firm PVM Oil Associates told Gulf News.

The group could raise production by 300,000 to 500,000 barrels per day to stabilise oil markets.