In a notable development for motorists in the United Arab Emirates, fuel prices have decreased for the first time in five months as of July. This reduction comes in response to a downturn in global crude oil prices, attributed to improved supply conditions worldwide.
The new pricing structure reflects a significant drop at the pumps: Super 98 is now priced at Dh3.40 per litre, down from Dh3.95, while Special 95 has been reduced to Dh3.29 per litre from Dh3.83. Additionally, E-Plus 91 has decreased to Dh3.21 per litre from Dh3.76, and diesel has seen a reduction to Dh3.60 per litre, previously at Dh4.33.
This decline in fuel prices is linked to a decrease in international crude oil benchmarks. Contributing factors include diminished concerns over potential disruptions in Middle East oil supplies. Diplomatic progress involving the United States and Iran, alongside smoother shipping operations through the crucial Strait of Hormuz, has played a central role in stabilizing global energy markets.
Since 2015, the UAE has pegged its domestic fuel prices to global oil market trends, allowing for such adjustments in response to international shifts. According to analysts, the recent price cut can be largely attributed to increased oil supplies on the global stage, higher export volumes from major producing nations, and the recovery of regional shipping pathways.