Fuel prices to increase slightly next month
Marginal rise in petrol, diesel cost prompted by higher global crude price
■
Fuel prices in the UAE will increase slightly in September, according to an announcement by distribution companies yesterday.
Super 98 will be costlier by 2 fils, increasing from Dh2.57 this month to Dh2.59 in September. Similarly, Special 95 price will go up from Dh2.46 to Dh2.48 and E Plus from Dh2.38 to Dh2.40. Diesel will be costlier by one fils, going from Dh2.63 to Dh2.64.
Fuel prices were higher in February, May, June and August and were reduced for March and July, data from the Ministry of Energy and Industry website showed.
Fuel prices have risen as global crude oil prices trend higher due to various factors, including geopolitical tensions in the Middle East as well as US President Donald Trump’s decision to reimpose sanctions on Iran, one of the world’s biggest oil producers.
Iran sanctions
Thousands of barrels of Iranian oil are expected to go off the market when sanctions come into effect in November.
Although the Organisation of Petroleum Exporting Countries (Opec), along with non-Opec members like Russia, decided to increase production by about one million barrels per day to cool oil prices during a meeting in Vienna in June, prices continued to climb.
Analysts predict crude will trend in the range of $70 to $80 per barrel for the rest of the year. “The battle between fears of a supply crunch driven by Iran sanctions and a further collapse in Venezuelan production on one side, and the future risk to demand as a result of global growth slowdown on the other, is likely to keep the oil market range-bound for now,” said Ole Hansen, head of commodity strategy at Saxo Bank.
International benchmark Brent was trading at $76.14, up 0.25 per cent at around 2.53pm UAE time yesterday.