UAE petrol and diesel prices to fall in June 2024

Motorists in the Emirates will pay less at the pump

The decrease for June follows four consecutive months of fuel price increases. Pawan Singh / The National

Fuel prices in the Emirates will decrease next month, following four consecutive months of increases, reflecting trends in the global oil market.

The prices for both petrol and diesel have been cut, state news agency Wam reported on Friday, citing the UAE fuel price committee.

How much will fuel cost in June?

The breakdown of fuel prices per litre for June is as follows:

• Super 98: Dh3.14, from Dh3.34 in May (down by 6 per cent)

• Special 95: Dh3.02, from Dh3.22 in May (down by 6.2 per cent)

• Diesel: Dh2.88, from Dh3.07 in May (down by 6.2 per cent)

• E-plus 91: Dh2.95, from Dh3.15 in May (down by 6.3 per cent)

The UAE liberalised fuel prices in 2015 to allow them to move in line with the market.

Oil prices have declined by more than 5 per cent this month amid expectations of higher-for-longer interest rates, bearish sentiment in broader financial markets, and signs of slowing demand from China.

Brent, the benchmark for two thirds of the world’s oil, was trading 0.13 per cent lower at $81.75 a barrel at 9.18am UAE time on Friday.

West Texas Intermediate, the gauge that tracks US crude, was down 0.28 per cent at $77.69 a barrel.

On the supply side, the Opec+ alliance of oil producers is widely expected by analysts to extend voluntary output cuts of 2.2 million barrels a day into the second half of 2024. The group is set to meet on June 2.

The group currently has total production cuts of 5.86 million bpd in place, representing roughly 6 per cent of global oil demand.

“We expect the eight Opec+ member states with voluntary production cuts to extend them for at least three months,” Giovanni Staunovo, strategist at UBS, said in a research note last week.

UBS expects Brent to rise to $91 a barrel over the coming months, based on its view that the oil market is undersupplied.

Although general market sentiment remains cautious due to concerns about higher interest rates affecting the economy and resulting in weak oil demand growth, real-time mobility data shows that oil demand growth is still “broadly healthy”, Mr Staunovo said.