Fuel prices in the UAE will increase by more than 10 per cent in February.
The rise comes after two months of falls and against a backdrop of surging global oil prices. Brent crude reached seven-year highs in January as demand for oil rose while supply remained tight.
The breakdown per litre is as follows:
• Super 98: Dh2.94 – up 10.94% from Dh2.65 in January
• Special 95: Dh2.82 – up 11.46% from Dh2.53 in January
• Diesel: Dh2.88 – up 12.50% from Dh2.56 in January
Fuel prices in the UAE were liberalised in August 2015 to allow them to move in line with the market. The prices for February are the highest since they were liberalised.
They were frozen by the Fuel Price Committee in 2020 after the onset of the coronavirus pandemic. They then started to adjust again in March 2021 to reflect the market movement.
Brent, the benchmark for two thirds of the world's oil, rose to $91.24 a barrel on Monday morning, while West Texas Intermediate, the gauge that tracks US crude, climbed to trade at $88.01 a barrel at 8.24am UAE time.
The positive market momentum comes amid signs of sustained global demand while supply remains tight, as well as intensifying geopolitical risks, particularly in Ukraine, that threaten to disrupt energy supplies.
“Underlying anxiety about global supply shortages, coupled with ongoing geopolitical risks, have caused the market to start the week on a strong note,” Toshitaka Tazawa, an analyst at Fujitomi Securities, told Reuters.
“With an expectation that Opec+ will keep the existing policy of gradual increase of production, oil prices will likely stay on a bullish sentiment this week,” he said, before issuing a prediction that Brent will remain above $90 a barrel while WTI heads towards $90.
Crude prices have already climbed more than 10 per cent this year as global economies continue to recover from the coronavirus pandemic, pushing demand higher.
Brent is set for its best January performance in three decades, with analysts expecting it to “overshoot” $125 a barrel this year and $150 in 2023.
