The UAE is set to adjust its retail fuel prices for July to align with international rates. In June, petrol prices dropped by 20 fils per litre, with Super 98, Special 95, and E-Plus 91 priced at Dh3.14, Dh3.02, and Dh2.95 per litre, respectively. This decrease was attributed to a nearly $5 reduction in the average Brent oil price in May.
Globally, oil prices saw an increase in June, rising from $78 a barrel at the beginning of the month to $86 a barrel by June 28. Despite this rise, the average Brent price for June was lower than that of May, standing at $82.59 compared to $83.35.
Since the deregulation of retail fuel prices in August 2015, the UAE has adjusted local petrol prices for the upcoming month based on the performance of oil prices in the preceding month. This adjustment will be evident when the prices are updated for July.
Compared to the global average for June, petrol prices in the UAE are cheaper by Dh1.84 per litre. Vijay Valecha, Chief Investment Officer at Century Financial, noted that traders have been closely monitoring summer fuel demand and tensions along the Israel-Lebanon border.
Analysts believe that the US Federal Reserve's easing of interest rates could boost oil demand as it may stimulate consumer spending.
