Petrol prices for the UAE increase in February 2024 while diesel prices drop

Motorists in the Emirates will pay more at the pump for petrol next month

An Adnoc attendant fills a car with petrol in Abu Dhabi. Victor Besa / The National

The price of petrol in the UAE will increase next month while diesel will cost less, it has been announced.

Prices fell consecutively in November, December and January, after increasing in September and October, reflecting the trend in the global oil market.

How much will fuel cost in February?

The breakdown in fuel price per litre for February is as follows:

• Super 98: Dh2.88, from Dh2.82 in January (up by 2.1 per cent)

• Special 95: Dh2.76, from Dh2.71 in January (up by 1.8 per cent)

• Diesel: Dh2.99, from Dh3 in January (down by 0.3 per cent)

• E-plus 91: Dh2.69, from Dh2.64 in January, (up by 1.8 per cent)

The UAE liberalised fuel prices in 2015 to allow them to move in line with the market. In 2020, prices were frozen by the fuel price committee after the start of the coronavirus pandemic.

The controls were removed in March 2021 to reflect the movement of the market once again.

Last week, oil posted its biggest weekly gain since October as supply concerns continue amid tension in the Middle East and prospects of higher demand boosted by positive economic growth in the US.

It is set for its first monthly gain since September as Houthi rebels attack ships in the Red Sea.

Brent, the benchmark for two thirds of the world’s oil, was trading 0.24 per cent lower at $82.67 a barrel at 9.59am UAE time.

West Texas Intermediate, the gauge that tracks US crude, was down 0.35 per cent at $77.55 a barrel.

The Israel-Gaza war, which started in early October, initially pushed prices up, although crude soon shed those gains on demand concerns.

Prices are also being affected by worries of slow demand growth in the US and China, the world's biggest consumers of crude. However, prices rose last week on strong economic growth in the US, the world’s largest economy.

On the supply side, the Opec+ oil producers group will continue with its cuts this year as it seeks to better balance the market.

In November, members of the alliance, led by Saudi Arabia and Russia, extended their voluntary oil output reductions until the end of the first quarter of 2024 amid concerns about future fuel demand.

Saudi Arabia, the world's largest oil exporter, will keep its voluntary output cut of a million barrels per day until the end of March, while Russia is expected to deepen its cut to 500,000 bpd and extend it until the end of the first quarter of 2024.

In total, the group revealed supply reductions of about 2.2 million bpd for the first quarter.