UAE Braces for Possible May Petrol Price Increase Amid Iran-Israel Tensions
In April 2024, petrol prices in the United Arab Emirates (UAE) experienced a surge of 12 fils per liter following a global increase of $3 per barrel in March.
This trend, reflective of international oil market fluctuations, is poised to continue into May, with the UAE preparing to announce next month's petrol prices to synchronize with global rates.
The recent escalation in global oil prices, catalyzed by heightened tensions between Iran and Israel, has had a palpable impact on local fuel costs. Throughout April, the price of Brent crude hovered around $90 per barrel, briefly dipping to $86 before rebounding to $89.5 by month-end. This volatility translated to an average monthly increase of $4.53 per barrel, with Brent averaging $88.79 in April compared to $84.26 in March.
April marked the third consecutive month of petrol price hikes in the UAE, with the Super 98, Special 95, and E-Plus 91 reaching Dh3.15, Dh3.03, and Dh2.96 per liter, respectively. This escalation underscores the susceptibility of local fuel prices to global market dynamics, prompting both transport companies and frequent motorists to anticipate and adapt to these fluctuations.
Despite these increases, the average petrol price in the UAE remains comparatively lower than the global average, standing at Dh3.03 per liter as opposed to the international average of Dh4.93 per liter. This disparity highlights the intricate interplay between global and local factors influencing fuel pricing, as evidenced by the fluctuating costs observed over the past few months.
In light of these developments, stakeholders across various sectors are closely monitoring the trajectory of global oil prices and their potential ramifications for local economies and consumer behavior. The monthly adjustments in petrol prices serve as a barometer for broader economic trends, reflecting the intricate balance between geopolitical tensions, market forces, and domestic policies in shaping energy costs in the UAE.
