Live updates: Follow the latest news on US-Iran war
UAE petrol prices are set to increase in April, in line with global oil markets that have been severely disrupted by the conflict between US-Israeli forces and Iran.
It will be a second consecutive month of fuel price increases, following drops in January and February, and a rise in December, UAE site Barq reported.
The increase was expected, with analysts cautioning that oil price levels will remain elevated if the conflict drags on.
How much will fuel cost in April?
Super 98: Dh3.39, increased 31 per cent from Dh2.59 in March
Special 95: Dh3.28, up 32 per cent from Dh2.48 in March
E-Plus 91: Dh3.20, up 33 per cent from Dh2.40 in March
Diesel: Dh4.69, more than 72.4 per cent higher than Dh2.72 in March
The cost of filling up in the UAE has been tied to the global oil market since 2015, when deregulation was introduced.
Factors affecting price fluctuations at the pumps include global economic uncertainty and regional conflict, which has caused Brent to nearly hit $120 per barrel.
Brent, the benchmark for two thirds of the world's oil, added 4.22 per cent to close the week at $112.60 per barrel. West Texas Intermediate, the gauge that tracks US crude, settled 5.46 per cent higher at $99.64 per barrel.
Since the war between US-Israeli forces and Iran broke out on February 28, Brent has surged by more than 54 per cent and nearly hit $120, while WTI has leapt by almost 50 per cent. Year-to-date, Brent and WTI have spiked by about 85 per cent and 74 per cent, respectively.
Talk of oil hitting $200 has also grown. Macquarie Group on Thursday warned that oil prices could hit $200 per barrel if the war drags on until June – a scenario Citi analysts also posited earlier this week.
That comes after Bloomberg, citing sources, reported that Washington is already studying how oil at $200 will affect the economy and contingency measures are being drawn up.
Energy infrastructure has been targeted during the conflict and the Strait of Hormuz, through which one fifth of the world's crude shipments pass, has been effectively shut.
The energy crunch is being felt worldwide, especially in Asian countries that are heavily dependent on imported crude. The Philippines has become the first country to declare a state of emergency over the crisis.
