Motorists in the Emirates will pay more at the pump in May
The price of petrol in the UAE will increase next month while diesel is set to be cheaper, the UAE fuel price committee announced on Tuesday.
Prices rose in February, March and April after dropping in November, December and January, reflecting the trends in the global oil market.
The breakdown in fuel price per litre for May is as follows:
• Super 98: Dh3.34, from Dh3.15 in April ($0.91, from $0.86, up by 6 per cent)
• Special 95: Dh3.22, from Dh3.03 in April (up by 6.3 per cent)
• Diesel: Dh3.07, from Dh3.09 in April (down by 0.6 per cent)
• E-plus 91: Dh3.15, from Dh2.96 in April (up by 6.4 per cent)
The UAE liberalised fuel prices in 2015 to allow them to move in line with the market. In 2020, prices were frozen after the start of the Covid-19 pandemic, with the controls lifted in March 2021.
Oil prices have been volatile in recent weeks as concerns about geopolitical tension counter fears of slowing demand amid higher inflationary conditions.
Brent, the benchmark for two thirds of the world’s oil, was trading 0.06 per cent lower at $88.35 a barrel at 11.09am UAE time on Tuesday.
West Texas Intermediate, the gauge that tracks US crude,was down 0.12 per cent at $82.53 a barrel.
Oil prices recorded a weekly gain last week on the back of a surprise drop in US crude stocks and persisting Middle East supply risks.
US inflation rose higher than expected last month, in another setback for the US Federal Reserve’s expectations for a soft landing.
Lower interest rates stimulate economic growth, resulting in higher crude demand.
The Personal Consumption Expenditures Price Index rose by 0.7 per cent last month, the Commerce Department reported on Friday. On an annual basis, headline inflation rose 2.7 per cent.
“Inflation appears entrenched well above the Fed’s 2 per cent target, hovering around 3 per cent with indications of a potential rebound,” said Althea Spinozzi, head of fixed income strategy at Saxo Bank.
“Consequently, the Fed may be compelled to maintain interest rates at their current levels for an extended period or resume interest rate hikes if a second wave of inflation materialises.”
Crude futures have gained about 15 per cent this year, an increase driven in part by output cuts introduced by the Opec+ group of crude producers.
Fears of a potential disruption of crude shipments from the Middle East amid continuing geopolitical uncertainty have also pushed prices higher.
Source: thenationalnews