Dubai: UAE motorists may face higher fuel prices in August after global crude oil prices climbed sharply in recent weeks, raising the likelihood of an upward revision under the country’s monthly fuel pricing mechanism.
Brent crude briefly surged above the $100-per-barrel mark during the month before easing to around $90, while US benchmark West Texas Intermediate (WTI) traded above $84. The rally followed renewed concerns over energy supply routes and geopolitical developments affecting global oil markets.
The increase has reversed much of the earlier decline in crude prices that led to lower UAE petrol and diesel prices in July. Last month, Super 98 fell to Dh3.40 per litre, Special 95 to Dh3.29, E-Plus 91 to Dh3.21, while diesel was reduced to Dh3.60 per litre.
The UAE reviews fuel prices every month based on the average international cost of crude oil and refined petroleum products during the previous month rather than daily market fluctuations. As a result, the final pricing for August will depend on how oil performs through the remainder of July.
Analysts say that if Brent crude remains close to the $95-$100 range, the monthly average could support a moderate increase in retail fuel prices. However, if prices retreat toward the $80-$85 range before the end of the month, the impact on UAE motorists could be limited.
The recent rally has been driven by concerns over potential disruptions to shipping routes in the region, prompting investors to reassess risks to global energy supplies. Earlier this month, oil prices had fallen amid expectations of improving supply conditions and easing regional tensions. Despite the recent gains, many international forecasters still expect oil prices to moderate later this year, provided supply remains stable and geopolitical risks ease.
For motorists, the official UAE fuel prices for August will be announced at the end of the month. Until then, market movements, shipping conditions and global supply trends will remain the key factors influencing whether petrol and diesel prices rise or remain close to July’s levels.
