UAE petrol prices to drop marginally in August

The National

7 days ago

Petrol prices in the UAE will drop marginally in August while diesel prices will rise, authorities announced on Thursday.
Petrol prices rose sharply in July after being kept steady in June following a marginal increase in May. Prices were reduced in March and April, following a rise of about 5 per cent in February. Fuel rates were unchanged in January.
How much will fuel cost in August 2025?
The breakdown of fuel prices per litre for next month is as follows:
Super 98: Dh2.69, compared to Dh2.7 in July
Special 95: Dh2.57, compared to Dh2.58 in July
Diesel: Dh2.78, compared to Dh2.63 in July
E-Plus 91: Dh2.50, compared to Dh2.51 in July
The UAE deregulated fuel prices in 2015 and movements are now tied to those in the global oil market, which has experienced significant volatility since the beginning of the year.
Concerns about a global economic slowdown due to US President Donald Trump's tariffs on trade partners, and retaliatory measures, have put pressure on oil prices.
Oil prices have increased this week on the prospects of a potential supply shortage after Mr Trump gave Moscow a shorter deadline to end the war in Ukraine.
Mr Trump said he would start imposing measures on Russia, such as secondary tariffs of 100 per cent on trading partners, if it did not make progress on ending the war within 10 to 12 days, moving from an earlier 50-day deadline.
He said he was not concerned about the impact on the market, suggesting the US could ramp up production. 'I don't even worry about it,' he said on Tuesday. 'We have so much oil in our country. We'll just step it up, even further.'
The US had warned China, the largest buyer of Russian oil, that it could face significant tariffs if it kept buying, Treasury Secretary Scott Bessent told a news conference in Stockholm.
JP Morgan analysts said in a note that while China was not likely to comply with US sanctions, India has signalled it would do so, putting at risk 2.3 million barrels per day of Russian oil exports.
"Trump's 10-day ultimatum to [Russian President Vladimir] Putin to sign a Ukraine ceasefire deal has injected about $4 to $5 per barrel supply risk premium in crude, overcoming a drag from a sustained sluggish oil demand growth outlook and an accelerated unwinding of Opec+ cuts," Vandana Hari, chief executive of Singapore-based Vanda Insights, told The National.
"In the days and weeks ahead, how the Ukraine standoff is resolved – or not – may hold the key to crude prices. I expect Trump would not impose such harsh sanctions against Russian oil that they cause a price spike. But one can't completely bet on it."
The oil market faced extreme volatility in June, primarily driven by the 12-day Israel-Iran conflict. Brent prices touched a five-month high of more than $81 a barrel, before erasing all gains as the two countries agreed to a fragile ceasefire.
Crude prices started the year strongly. The closing price of Brent peaked at more than $82 a barrel on January 15, while West Texas Intermediate hit almost $79 per barrel on that day.
However, demand concerns, a slowing global economy and less-than-stellar growth in China, the world's biggest crude importer, have weighed on crude prices this year. Mr Trump's push to impose hefty tariffs on trade partners has been the biggest driver of declining oil prices.
Markets remain focused on the US deadline to nail down trade deals by August 1, and the Opec+ meeting over the weekend that will decide supply for September.
In July, Opec+ agreed to a larger-than-anticipated increase in its monthly oil output, by 548,000 barrels per day, for August. The decision marked the fifth consecutive month that the group of oil producers, led by Saudi Arabia and Russia, agreed to raise production.
However, the latest increase was a jump from the 411,000 barrels per day for each of May, June and July. The group had approved an increase of 138,000 barrels per day in April.
"The Opec+ group of 8 will likely push through a final tranche of 548,000 bpd increase in target for September," Ms Hari said.
"The market has mostly baked in that outcome, though the decision may initially exert some downward pressure on crude, especially if the Russia geopolitical risk premium has abated or settled into a holding pattern by then."