Fuel prices in the UAE have risen for three consecutive months as global oil prices surged by nearly 50 per cent between February and May.
The UAE’s fuel prices committee is expected to announce petrol prices for June later this week in line with global oil market trends.
Fuel prices could increase for a fourth consecutive month after crude oil prices remained above $100 per barrel throughout much of May, largely driven by disruptions linked to the closure of the Strait of Hormuz following the US-Israel-Iran conflict.
Brent crude averaged around $106 per barrel in May, compared to roughly $99 per barrel in April, as supply concerns linked to the closure of the Strait of Hormuz continued to keep global oil prices elevated.
In the UAE, petrol prices increased for the third consecutive month in May, with Super 98, Special 95, and E-Plus priced at Dh3.66, Dh3.55, and Dh3.48 per litre respectively. Fuel prices have climbed by nearly 50 per cent since February, when Super 98 was retailing at Dh2.45 per litre — an increase of Dh1.21 per litre.
Brent and WTI crude closed at approximately $103.5 and $96.6 per barrel respectively over the weekend.
The UAE recorded its highest-ever fuel prices in 2022 following the Russian invasion of Ukraine, when petrol prices crossed Dh4 per litre for the first time in the country’s history. In July 2022, Super 98 reached Dh4.63 per litre, while Special 95 rose to Dh4.52 per litre.
Monthly fuel price revisions in the UAE directly affect household budgets, as petrol remains a recurring and essential expense for many residents. Even modest increases can significantly raise transportation costs over time.
However, oil prices could ease in the coming weeks if the United States and Iran move closer to a peace agreement.
Rania Gule said any anticipated agreement between Washington and Tehran would likely place downward pressure on oil prices due to expectations that part of Iran’s oil supply could return to global markets.
“This would increase global supply and reduce the geopolitical risk premium that has supported prices in recent periods. Therefore, oil may initially move lower, potentially declining between 4 per cent and 8 per cent during the first phase after an official announcement,” she said.
