Petrol to cost six fils more per litre from October 1

The price of unleaded petrol-98 has been increased to Dh1.81 from Dh1.75 per litre. Petrol-95 will cost Dh1.70, up from Dh1.64 per litre last month.

Fuel prices in the UAE are set to rise from Saturday following a six per cent surge in global crude prices as some of the world's biggest oil producers agreed to cut production for the first time since 2008.
The UAE Ministry of Energy said all grades of petrol will be six fils more expensive from Saturday. Super 98 will be priced at Dh1.81 a litre, Special 95 at Dh1.70, and E Plus 91 at Dh1.63. The price of diesel is set to rise up 2.3 per cent to Dh1.76 a litre, up from Dh1.72 this month.


For September, Super 98 was priced at Dh1.75 a litre, Special 95 at Dh1.64 and E Plus was Dh1.57. Diesel cost Dh1.72.
The UAE's fuel pricing policy, which is linked to global prices, was introduced in August 2015 with the set monthly cost announced on the 28th of every month. The policy was implemented in the wake of a crucial government decision to cut subsidies on fuel in 2015, with officials setting prices monthly, tracking the open market more closely than when the subsidies were in place.
On Wednesday, some of the world's biggest oil producers have agreed to cut production for the first time in eight years, sending crude prices higher by more than six per cent and sparking big gains for energy stocks.
After more than four hours of talks in Algiers, Opec committed itself to reducing output to between 32.5m barrels a day and 33m b/d. The new production target marks a drop of between 240,000 b/d and 740,000 b/d from the 33.24m b/d the Opec pumped in August, but analysts say the scope of the reduction is inadequate to arrest the supply growth and bring balance back to the supply-demand dynamics.
The agreement surprised oil traders who thought a consensus would be difficult to reach because of divisions between Saudi Arabia and Iran, two of Opec's largest and most influential members. Brent crude, the global oil benchmark, jumped $2.84 a barrel to $48.85 on Wednesday but dipped 37 cents to $48.32 while West Texas Intermediate was off 18 cents at $46.87 on Thursday morning, as the rally ran out of steam as investors asked whether Opec members would stand by an agreement and raised questions over how much sway the group now has over a market still brimming with crude from around the world.
- issacjohn@khaleejtimes.com