UAE hikes fuel prices for 3rd month in a row; here's why

The UAE’s Fuel Price Committee on Thursday hiked retail petrol and diesel prices for September by over nine per cent for petrol and 15-plus per cent for diesel, rising for the third month on a trot.

Starting September 1, Super 98 petrol will cost Dh3.42 a litre as compared to Dh3.14 in August, up 28 fils or 8.9 per cent. Special 95 price has been increased from Dh3.02 in August to Dh3.31 per litre in September, an increase of 9.6 per cent or 29 fils. Priced at Dh3.23, E-Plus 91 will cost 9.5 per cent or 28 fils more in September.

Diesel price has been hiked by 15.25 per cent or 45 fils to Dh3.4 a litre.

Brent prices traded in the $80s a barrel in August, ranging between $84.91 and $87.55. It reached the highest level of $87.55 on August 9 before it retreated later in the month.

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Saxo Bank said crude oil had re-established some upside momentum after the early August correction ran out of steam. In the near term, extended Opec production cuts will help support tight market balances but the combination of rising production spare capacity and worries about the economic outlook may still prevent prices from having a sustained move above $90.

Since the UAE deregulated petrol prices in 2015, the government has been revising retail fuel rates at the end of every month to bring them in line with the global rates. Prices peaked last year after the outbreak of the war between Russia and Ukraine.

Despite the rise in petrol prices for three consecutive months, local rates are still cheaper by one-third compared to the global average.

• Business
• UAE