By Staff Reporter
Dubai: UAE motorists will pay more at the pump in July, following an official price update released by the UAE fuel price committee on Monday. But there’s cautious optimism that prices may ease in the near future, thanks to a recent plunge in global oil rates and easing regional tensions.
For July, Super 98 petrol will cost Dh2.70 a litre, up from Dh2.58 a litre in June, while Special 95 will cost Dh2.58 a litre, compared to Dh2.47 a litre the previous month.
Similarly, E-Plus category petrol will be available for Dh2.51 a litre in July, up from Dh2.39 a litre in June, while diesel will now cost Dh2.63 a litre, compared to Dh2.45 a litre the previous month.
These monthly fuel price changes are closely tracked by residents, as they directly affect budgeting for transport, especially during the summer travel season.
How UAE petrol, diesel prices fared last month
Why oil prices are falling again
Oil prices fell sharply last week — around 13% — snapping a three-week rally. The earlier gains through most of June were reflected in July’s higher fuel prices.
A major reason behind the most recent drop was a ceasefire agreement between Israel and Iran, which eased fears of supply disruptions from the Middle East, a region that supplies about a third of the world’s oil.
Following the truce, oil markets stabilised. Brent crude slipped near $67 per barrel, and US benchmark West Texas Intermediate hovered around $65. The fall marked the biggest weekly loss in over two years.
Adding to the pressure on oil, hedge funds ramped up short positions, betting prices would fall further. There’s also talk of a potential OPEC+ decision to raise supply by 411,000 barrels a day in August — for a fourth month in a row — which could push prices down further if demand doesn’t keep up.
What this means for UAE residents
Even though UAE fuel prices are adjusted monthly and also reflect local refining and distribution costs, they remain strongly tied to global oil movements.
So, unless new geopolitical tensions emerge or oil supply is suddenly restricted, UAE drivers may see petrol prices come down in August or September.
For now, higher prices in July may squeeze budgets slightly — but if oil prices remain under pressure, relief could be around the corner.
Source: Gulf News
