Dubai: UAE motorists will pay significantly less to fill up from July 1 after authorities announced the first reduction in fuel prices since the Middle East conflict sent global oil markets soaring four months ago.
The UAE Fuel Price Committee cut prices across all fuel grades for July, reflecting the sharp decline in global oil prices through June as shipping through the Strait of Hormuz started to recover and fears of prolonged supply disruptions eased considerably.
New July fuel prices
From July 1, motorists will pay: Super 98: Dh3.40 per litre, down from Dh3.95 in June (-55 fils, or 13.9%)
Special 95: Dh3.29, down from Dh3.83 (down 54 fils, or 14.1%)
E-Plus 91: Dh3.21, down from Dh3.76 (down 55 fils, or 14.6%)
Diesel: Dh3.60, down from Dh4.33 (down 73 fils, or 16.9%)
The reductions are among the biggest month-on-month cuts since the UAE adopted market-linked fuel pricing in 2015.
Why prices have fallen
The July revision follows a dramatic turnaround in global oil markets. Brent crude averaged around $106 a barrel in May, when conflict in the Gulf and disruptions to shipping through the Strait of Hormuz pushed oil prices briefly above $110-$120.
Through June, however, crude prices fell sharply as commercial traffic gradually resumed and diplomatic efforts reduced fears of a prolonged supply shock. Brent recently traded close to $73 a barrel, broadly returning to levels seen before the conflict erupted.
Because UAE fuel prices are calculated using the previous month’s average global oil prices, June’s lower crude prices fed directly into July’s pump prices.
