UAE petrol prices to rise above Dh3 a litre in March

Global oil prices have surged in recent weeks

Fuel prices in the UAE were liberalised in August 2015 to allow them to move in line with the market. Photo: Fatima Al Marzooqi / The National

Petrol prices in the UAE are set to rise in March against a backdrop of surging global oil prices.

Having risen more than 10 per cent in February, motorists across the Emirates will pay 10 per cent more at the pumps again next month.

The breakdown per litre is as follows:

• Super 98: Dh3.23 – up 9.86% from Dh2.94 in February

• Special 95: Dh3.12 – up 10.63% from Dh2.82 in February

• Diesel: Dh3.19 – up 10.76% from Dh2.88 in February

Fuel prices in the UAE were liberalised in August 2015 to allow them to move in line with the market. The prices for March are the highest since they were liberalised, and it is the first time since then that they have gone above Dh3 a litre.

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.

The price of Brent, the benchmark for two thirds of the world's oil, soared to above $105 last week — prices not seen since 2014.

And oil prices could hit $130 a barrel by June if the Ukrainian conflict disrupts Russian crude flows. Oil prices could surge beyond that if the crisis escalates further, according to industry analysts.

Prices did, however, recede to below $100 a barrel at the end of trading on Friday after various punitive measures announced by the US and its European allies against Russia for its military offensive in Ukraine, fell short of targeting Moscow's energy industry.

Brent was up 4.67 per cent, trading at $102.50 per barrel at 3.55pm UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was also 4.47 per cent higher at $95.68 per barrel.

Meanwhile, Opec+, which is led by Saudi Arabia and Russia, will meet this week to decide future production cuts.