Dubai: Motorists in the UAE might see some relief when they buy fuel in the coming months. This is because global oil prices are not as high as they were during the conflict in the Middle East. However, experts say that fuel prices will only go back to what they were before the war if the international energy market remains stable for a long time.
The price of Brent oil has gone down a lot from its peak of more than $120 per barrel. This is news for countries like the UAE, where the price of fuel is linked to the global oil market. But crude oil prices are still higher than they were before the conflict started, so it might take some time to see prices at the fuel pump.
The UAE checks the price of petrol and diesel every month. Changes it based on the average global price of crude and refined fuel. This means that if oil prices go down for a time, the price of fuel will also go down, but it will happen slowly.
In August, motorists in the UAE are still paying prices for fuel. The price of Super 98 is Dh3.60 per litre, Special 95 is Dh3.49, E-Plus 91 is Dh3.41, and diesel is Dh3.80. These prices are still higher than they were before the conflict. They are not as volatile as they were during the worst period.
There are three things that will determine whether fuel prices will continue to go down. The first thing is if the price of Brent crude oil stays low for a time. The second thing is if OPEC+ produces oil, which could increase the global supply and reduce the pressure on prices. The third thing is if the Strait of Hormuz, which is a route for global energy exports, is more stable.
The oil market is still sensitive to what’s happening in the world. Prices can change quickly if there is news about diplomacy or if there are new security concerns in the Gulf. Even though things are looking better for the supply of oil, any problems with exports or shipping routes could change the trend.
For motorists in the UAE, things are looking a little better. If the price of oil continues to go down and there is less tension in the region, fuel prices might go back to what they were before the conflict over the next few months. The speed at which prices go down will depend on whether the global energy market is getting better, not just on short-term changes in oil prices.
