UAE fuel prices to rise in October

dubai — Motorist in the UAE will have to pay higher fuel prices from October following an upward price revision by UAE Ministry of Energy in line with global crude price increase.

Effective October 1, the price of Super 98 will go up to Dh2.61 from Dh2.59 per litre, while Special 95 category petrol will cost Dh2.50, up from Dh2.48 per litre in September.

The price for diesel will rise by 12 fils per litre to Dh2.76 from Dh2.64 a litre in September.

On Thursday, global oil prices rose by one per cent as prospect of tighter markets grew with the impending US sanctions against major crude exporter Iran.

Front-month Brent crude futures were at $82.23 per barrel at 0650 GMT, up 89 cents, or 1.1 per cent from their last close, and just off Tuesday’s four-year high. US West Texas Intermediate (WTI) crude futures were at $72.47 a barrel, up 90 cents, or 1.3 per cent from their last settlement. Traders said oil markets were tightening ahead of Washington’s planned sanctions on Iran’s petroleum industry from November 4.

Commodity traders Trafigura and Mercuria said that Brent could rise to $90 per barrel by Christmas and pass $100 in early 2019, as markets tighten once US sanctions against Iran are fully implemented from November.

“We view that crude market risks are heavily skewed to the upside and whilst we are not explicitly forecasting Brent to rise to $100 per barrel, we see material risks of this coming to fruition,” Japanese bank Mitsubishi UFJ Financial Group said in a note to clients.

At its 2018 peak, Iran exported around three million barrels per day (bpd) of crude oil, equivalent to 3 per cent of global consumption. Iran’s September exports fell to around two million bpd as buyers around the world bow to U.S. pressure and cut imports.

The decision by Opec and allies at their meeting in Algiers recently not to immediately boost production is also spurring the oil price rally.