UAE fuel prices are set to increase in June, amid a drop in global oil benchmarks, which have been volatile due to shifting positions in the US-Iran war. However, diesel prices will drop.
It will be the fourth consecutive month of petrol price increases this year, after costs fell in January and February, and rose in March and April.
At their peak during the conflict, which began on February 28, Brent and WTI shot up by about 70 per cent.
Since those highs, however, prices have declined. On May 29, Brent and WTI settled at $91.12 and $87.36, respectively, retreating by more than a quarter. During the month, the two benchmarks fell by about 15 per cent.
It will be the fourth consecutive month of petrol price increases this year, after costs fell in January and February. It will be the first price decrease after three consecutive months of increases, after costs fell in January and February.
How much will fuel cost in June?
Super 98: Dh3.95, up 7.92 per cent from Dh3.66 in May
Special 95: Dh3.83, up 7.9 per cent from Dh3.55
E-Plus 91: Dh3.76, up 8 per cent from Dh3.48
Diesel: Dh4.33, down 7.67 per cent from Dh4.69
The cost of fuel in the UAE has been tied to the global oil market since 2015, when deregulation was introduced.
The US-Israeli war on Iran, which caused Brent to surge to almost $120 a barrel in March, continues to add volatility to prices.
They remain elevated amid persisting concerns related to the conflict, including supply uncertainties, the Strait of Hormuz remaining effectively shut and the back-and-forth negotiations between Washington and Tehran, which have also accused each other of breaching their ceasefire.
Analysts have said that it may take time for pump prices to ease back to pre-war levels, especially compared to the surge that resulted from the onset of the Russia-Ukraine war in 2022.
Swiss bank UBS has forecast the price of Brent at $90 a barrel in the next nine to 12 months. Commerzbank also raised its Brent forecast to $90 by the end of September, assuming the strait remains shut to normal shipping for another two months.
US crude, petrol and distillate stockpiles all fell last week, according to the Energy Information Administration, as refiner and consumer demand rose and exports declined.
