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Motorists will have to pay more to fill the tanks of their vehicles next month as the UAE on Sunday announced an eight per cent average increase in fuel oil prices in line with the international market.
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According to an announcement by the UAE Fuel Price Follow-up Committee, Super 98 petrol will increase to Dh2.29 from Dh2.12 per litre in March, reflecting an increase of 8.01 per cent.
Special 95 petrol cost will increase to Dh2.17 from Dh2.01 per litre last month, indicating an increase of 7.96 per cent.
E-Plus fuel price also surged as the motorists will have to pay Dh2.10 in April compared to Dh1.72 a litre. Diesel will cost Dh2.22 instead of Dh2.15 a litre, reflecting an increase of 3.25 per cent.
This is the second consecutive hike in fuel prices. Earlier, the government kept prices unchanged for 11 consecutive months until February despite rising oil prices, which traded above $70 a barrel due to an increase in economic activity across the globe.
International oil prices sustained an upward trend in recent months as robust economic data from the United States, Asia and Europe revived hopes to resume economic activity soon, while the spread of a new Covid-19 variant and lockdowns raised concerns about the near-term recovery in fuel demand.
Benchmark US crude oil for May delivery rose $2.41 to $60.97 a barrel on Friday while Brent crude oil for May delivery rose $2.62 to $64.57 a barrel.
Analysts and energy experts said prices are up because more than 30 oil tankers are waiting to traverse the Suez Canal, which has been blocked since Wednesday after a container ship ran aground. It may take weeks to free the beached vessel, though analysts said low seasonal demand for oil may mitigate the impact of the blockade on energy prices.
— muzaffarrizvi@khaleejtimes.com
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