After three consecutive months of price reductions by the fuel price committee, retail fuel prices in the UAE dropped to their lowest level in eight months in October.
The Russia-Ukraine conflict that broke out on February 24, 2022, led to an increase in fuel prices in UAE starting in February 2022 and crossing the Dh4 per liter mark in June this year for the first time ever.
After the Russia-Ukraine conflict, oil prices rose and peaked in July when Super 98 was priced at Dh4.63 per liter - the highest rate ever in the country.
For the month of October, the UAE priced Super 98 petrol at 3.03 per liter, down from Dh3.41 last month. Similarly, other fuel variants’ prices were also reduced for October.
In March, Super 98 petrol was priced at Dh3.23 a litre as compared to Dh2.94 in February.
Fuel prices were deregulated in August 2015 in the UAE as the government-linked local fuel prices to global oil rates. A committee has been set up to review fuel prices in the UAE every month.
Following the outbreak of the military conflict, oil prices consistently stayed above the $100 per barrel mark. But the prices started to decline in the last few months after fear about the global recession began to take a toll on the commodity prices.
On September 23, global oil prices plunged about five per cent to hit an eight-month low as the US dollar strengthened to over two decades and worries about rising interest rates pushing major global economies into recession, resulting in a drop in global oil demand.
Energy analysts say that oil price swings have become the norm due to global economic worries and the prospect of tightening oil supplies.
Edwar Moya, a senior market analyst at Oanda, said the third quarter was filled with a doom and gloom global economic outlook which meant oil’s losses were going to be severe.
“The oil demand outlook is not getting any favours from economic data or corporate reports. Opec+ will have an easy job next week, but oil prices won’t catch a bid until energy traders are confident an aggressive reduction of output at around 1 million barrels per day will be delivered. Brent crude is poised to consolidate below the $90 level,” he said.