Emirates motorists will be heading into the new year in good spirits as fuel prices are expected to drop after a four months straight of hikes. The reduction of the prices has been attributed to and emerged at the right moment as living standards increases keeping in mind the international oil market.
Price Breakdown for June:
Super 98: This tourism earning reached Dh3. 14 (Dh3. 34 in May- a six percent decrease).
Special 95: The aggregate value of oil exports was Dh3. 02 billion – Dh3. 22 billion lower than May’s Dh3. 22 billion, a 6. 2 percent decrease.
Diesel: 1It fell in the following areas: Spending on medical services decreased from Dh3. 07 in May to Dh2. 88 in June, a drop of 6. 2%.
E-plus 91: May values, Dh2. 95; however it slightly declined by 6. 3% in the current month from Dh3. 15.
Subsequent political liberalization of fuel prices in 2015 to reflect performance of market prices gives the consumers more options, especially as compared to the earlier regime of state control of fuel prices.
Oil prices have been down by more than 5% in the current month as trends that have affected global financial markets also impacted on this trade segment through expectation of higher interest rates, bearish financial results, and probable weaker demand in China. The international benchmark Brent crude was at $81. 75 per barrel while the US standard, West Texas Intermediate, at $77. 69 barrels.
On the supply side, the group of OPEC+ is anticipated to prolong voluntary restraint in the increase of average production by 2. 2 million barrels per day into the second semester of 2024. The company intends to make this decision in a meeting on June 2 as a way of managing the operations in the market considering that uncertainty still looms.
Those are provisional figures still, but it is real-time mobility data that indicates that demand for oil is is still quite healthy. Pundits have said that the price of Brent crude will hit $91 per barrel in the future months due to inadequate supply.
The decrease in fuel prices can be attributed to reductions in the overall costs of living and other forms of social expenses that have been undertaken in the UAE to promote spending and address financial restraints in the country.
