The UAE will revise retail fuel prices for the month of July soon to bring them in line with global rates.
Petrol prices fell 20 fils per litre in June, pricing Super 98, Special 95 and E-Plus 91 at Dh3.14, Dh3.02 and Dh2.95 per litre, respectively. This was due to a nearly $5 drop in average oil price in Brent during May.
Globally, oil prices rose in June, increasing from a low of $78 a barrel at the start of the month to $86 a barrel on June 28.
Despite prices increasing in June, Brent’s average price was lower than last month. Brent averaged $82.59 this month as compared to $83.35 in May. Since the UAE deregulated retail fuel prices in August 2015, local petrol prices are adjusted for the upcoming month based on the oil price’s performance of the outgoing month. This will be reflected when oil prices are revised for July.
Petrol prices in UAE are cheaper by Dh1.84 per lire when compared to the global average for the month of June.
Vijay Valecha, chief investment officer, Century Financial, said traders have been watching for summer fuel demand and tensions on the Israel-Lebanon border.
Analysts said the easing interest rates by the US Federal Reserve could be a boon for oil because it could increase demand from consumers.
