UAE expected to increase petrol prices in February due to regional conflict

• Oil prices in January 2024 slightly increased by 1.8% compared to the previous month.
• Motorists and local taxi operators adjust their fares after the announcement of petrol prices.
• Despite being deregulated, UAE fuel prices are cheaper than the global average.

On January 31, the UAE Fuel Price Committee will announce petrol and diesel prices for February to align them with global rates. In January 2024, oil prices experienced a slight increase of around 1.8% compared to the previous month. The UAE typically revises and adjusts retail fuel prices for the upcoming month on the last day of the existing month.

Globally, oil prices remained below $80 a barrel for most of January but surged to nearly $83 a barrel last week. As of Tuesday morning, Brent was trading at $82.63 a barrel, up 0.28%, while WTI was up 0.27% at $77.05 a barrel. The continuous rise in prices is attributed to geopolitical tensions in the Middle East.

In January, petrol prices saw a reduction for the third consecutive month, with rates being cut by 14 fils per liter. Super 98, Special 95, and E-Plus 91 were priced at Dh2.82, Dh2.71, and Dh2.64 a liter, respectively.

Motorists, especially those who frequently travel long distances, eagerly await petrol price announcements to make adjustments to their monthly budgets accordingly.

After the announcement of petrol prices, local taxi operators also adjust their fares accordingly.

There might be a slight upward adjustment in prices for February; however, they are subject to the official announcement.

Despite being deregulated, fuel prices in the UAE are much cheaper than the global average. On January 22, 2024, Special 95 was selling for Dh2.71 a liter, compared to the global average rate of D4.72 a liter.

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