A decrease in gasoline prices in the UAE by 40% of the global average
Petrol prices in the UAE are currently more than 40% lower than the global average.
In the UAE, fuel costs fell by 12%.
In the United Arab Emirates, the Fuel Price Committee decreased retail gasoline prices for the three types by around 12% in November.
The three versions, Super 98, Special 95, and E-Plus 91, will cost AED 3.03, AED 2.92, and AED 2.85 per litre, respectively, representing a near-four-month low.
This is the first time in four months that retail fuel prices have been cut, providing relief to motorists across the country.
The average global fuel price
According to the globalpetrolprices website, the average global price of 95 octane gasoline, Special 95 in the UAE, is 4.91 dirhams, which is 40.5 percent less than the November price of 2.92 dirhams.
The following factors come into play while determining the price of a diesel. Housing, transportation, food and beverages, and education are the biggest drivers to inflation in the UAE. According to Trading Economics, transportation accounts for around 13% of total inflation weight.
The UAE has been evaluating monthly retail fuel prices since 2015 as part of a deregulation program to bring prices in line with global averages. WTI and Brent crude oil were trading at $82.64 and $88.06 a barrel, respectively, on Tuesday afternoon.
Forecasts from the World Bank
According to the World Bank, the oil price will average $90 per barrel in the fourth quarter of this year before falling to $81 next year.
She warned that the conflict between Israel and Palestine could "push global commodity markets into uncharted waters." She predicted that if global supplies are disrupted owing to the Middle East situation, oil prices might climb to $157 per barrel.
November gasoline and diesel prices in the UAE
- Premium 98 gasoline costs up to AED 3.03
- Special 95 gasoline costs up to 2.92 AED
- Gasoline 91E Plus reaches 2.85 AED.
- Diesel costs up to AED 3.42.
