The UAE Fuel Price Committee is poised to unveil retail prices for petrol and diesel for the month of December. The announcement comes against the backdrop of a decline in global oil prices observed throughout November.
In November, the UAE implemented a significant reduction in local petrol and diesel prices, cutting rates by 41 fils a litre after experiencing four consecutive months of increases. The adjustments saw Super 98 prices dropping by 11.9% to Dh3.03, Special 95 rates lowered by 12.3% to Dh2.92, and E-plus prices reduced by 12.57% to Dh2.85. Diesel prices were also trimmed by 15 fils to Dh3.42 per litre.
Since the deregulation of oil prices in 2015, the UAE revises retail petrol prices at the end of each month to align with global rates.
Global oil prices faced downward pressure in November, dipping below $75 a barrel mid-month due to concerns about sluggish global economic growth, particularly in China, coupled with strong non-OPEC oil supply. On November 29, WTI was trading at $76.5 per barrel, reflecting a nearly seven percent decrease compared to October 29. Brent also experienced a 5.4% decline, trading at $86.35 per barrel on the same date.
Despite these trends, global oil prices showed a two percent recovery on Tuesday, attributed to the potential extension or deepening of supply cuts by OPEC+.
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Considering the observed trends in global oil prices throughout November, it is anticipated that local retail rates in the UAE may be revised downwards for the second consecutive month. The final decision will be disclosed tomorrow.
