In the United Arab Emirates, fuel prices have experienced a reduction in July, marking the first such decrease in five months. This change comes as global crude oil prices have softened, thanks to improving conditions in the supply chain.
The new fuel prices are as follows: Super 98 is now Dh3.40 per litre, down from Dh3.95. Special 95 has been reduced to Dh3.29 per litre from Dh3.83. E-Plus 91 is priced at Dh3.21 per litre, previously Dh3.76. Diesel has seen a decrease to Dh3.60 per litre from Dh4.33.
This decline in prices is largely attributed to a drop in international crude oil benchmarks. The easing of concerns regarding supply disruptions in the Middle East has played a significant role in this trend. Diplomatic progress, notably involving the United States and Iran, has facilitated improved shipping through the crucial Strait of Hormuz, thereby stabilizing the global energy markets.
Since 2015, the UAE has pegged its domestic fuel prices to the fluctuations of global oil markets. Analysts point out that the current reduction in fuel prices can be linked to several factors, including an increase in global oil supplies and higher exports from key producing nations. Additionally, the recovery of regional shipping routes has contributed to the downward adjustment in fuel prices.