UAE petrol and diesel prices to rise in March 2024

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

Vehicles queue to refuel at a petrol station in Dubai. AFP

The prices of petrol and diesel in the UAE will increase next month, it has been announced.

Prices rose in February after dropping in November, December and January, reflecting the trend in the global oil market.

How much will fuel cost in March?

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

• Super 98: Dh3.03, from Dh2.88 in February (up by 5.2 per cent)

• Special 95: Dh2.92, from Dh2.76 in February (up by 6 per cent)

• Diesel: Dh3.16, from Dh2.99 in February (up by 5.7 per cent)

• E-plus 91: Dh2.85, from Dh2.69 in February, (up by 6 per cent)

The UAE liberalised fuel prices in 2015 to allow them to move in line with the market. In 2020, prices were frozen after the start of the Covid-19 pandemic.

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

Oil prices have increased by more than 6 per cent this month amid expectations of interest rate cuts by the US Federal Reserve and supply concerns.

The Opec+ alliance of oil producing countries will consider extending voluntary cuts of 2.2 million barrels a day into the second quarter, Reuters reported on Tuesday, quoting sources.

Some sources have said that the group may extend the cuts until the end of the year.

The production of Opec’s 12 member countries decreased by 350,000 bpd in January to 26.24 million bpd, the group said in its February oil market report.

Attacks on commercial ships in the Red Sea by Yemen’s Houthi rebels have added to the risk premium for oil futures.

Oil prices were steady on Thursday despite a larger-than-expected build in US crude stocks.

Brent, the benchmark for two thirds of the world’s oil, was trading 0.07 per cent lower at $83.62 a barrel 9.53am. West Texas Intermediate, the gauge that tracks US crude, was up 0.03 per cent to close at $78.56 a barrel.

US crude inventories, an indicator of fuel demand, increased by 4.2 million barrels in the week that ended on February 23, the US Energy Information Administration found.

Analysts polled by Reuters expected a growth of 2.7 million barrels.

However, petroleum stocks decreased by 2.8 million barrels last week, while distillate stocks dropped by 500,000 barrels, EIA data showed.