In a notable shift from recent trends, fuel prices in the United Arab Emirates (UAE) have decreased this July, marking the first reduction in five months. This change comes as global crude oil prices have softened due to improved supply conditions.
The updated prices at the pump are as follows: Super 98 is now priced at Dh3.40 per litre, down from Dh3.95; Special 95 has dropped to Dh3.29 per litre from Dh3.83; E-Plus 91 is Dh3.21 per litre, reduced from Dh3.76; and Diesel costs Dh3.60 per litre, a decrease from Dh4.33.
This decline in fuel prices is attributed to a downturn 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 advancements involving the United States and Iran have contributed to a more stable energy market globally, alongside improved shipping conditions through the Strait of Hormuz.
Since 2015, the UAE has pegged its domestic fuel prices to the fluctuations of global oil markets. Analysts highlight that the recent price cuts are a result of increased global oil supplies, an uptick in exports from major oil-producing countries, and the recovery of regional shipping routes.