The United Arab Emirates (UAE) has implemented a significant reduction in retail petrol prices for the month of June. The prices of all three petrol variants, namely Super 98, Special 95, and E-Plus, have been lowered by 21 fils per liter, reaching their lowest level in four months.
The Fuel Price Follow-up Committee has implemented a decrease of 6.6 percent for Super 98 and Special 95, while E-Plus has been reduced by 7 percent. These changes will take effect starting tomorrow.
In June, the price of Super 98 petrol will be Dh2.95 per liter, down from Dh3.16 in May. Special 95 will cost Dh2.84 per liter, reduced from Dh3.05, and E-Plus 91 will be priced at Dh2.76 per liter, as opposed to Dh2.97 during the previous period. Additionally, the diesel price has been lowered to Dh2.68 per liter, a decrease from Dh2.91.
The deregulation of petrol prices in the UAE was implemented in 2015 to align with global rates, aiming to ease the financial burden on the government and reduce losses incurred by fuel retailers in the country.
Comparatively, petrol prices in the UAE are significantly lower than the global average of Dh4.7 per liter, according to globalpetrolprice.com.
The decline in global oil prices during May, driven by weaker-than-expected Chinese economic data, has put pressure on the market. Brent and West Texas Intermediate crude (WTI) contracts for July have experienced monthly declines of over 7 percent and 9 percent, respectively.
The upcoming OPEC+ meeting on June 4 may result in a surprise production cut by the oil-producing group, similar to the one announced in April, according to analysts.
Residents in the UAE have expressed their satisfaction with the reduction in petrol prices. Adnan Butt, a Sharjah resident, highlighted the positive impact on his budget, as he estimates savings of around Dh400-Dh450 in June due to reduced fuel costs. Suresh Patel, a sales executive, also welcomed the price drop, as it will significantly benefit his monthly fuel expenses, allowing him to save a considerable amount.