UAE hikes fuel prices for third straight month

UAE fuel prices will rise for a third consecutive month as the US-Iran standoff continues to weigh heavily on global crude prices.

The Emirates’ Fuel Price Committee, which reviews retail prices at the end of each month, will increase the prices of all petrol grades by nearly 16 percent in October.

The increase follows a sharp rise in crude prices in September. The continuing conflict with Iran and disruption to Gulf oil flows kept Brent above $100 a barrel, despite a recent recovery in regional exports.

Special 95 petrol, the most widely used grade for everyday cars, will rise from AED3.69 to AED4.28 ($1.17) per litre on October 1.

Super 98 will rise by 60 fils to AED4.40, while E-Plus 91 will increase to AED4.21. Diesel will cost AED4.80, nearly 12 percent more than in September.

Brent crude, the global benchmark, has surged almost 15 percent over the past month, while US West Texas Intermediate crude has gained about 9 percent.

Brent crude futures rose 0.5 percent to $103.1 a barrel in early trading on Wednesday, while WTI was flat at $89.44 a barrel.

US Central Command has claimed that thousands of ships have passed freely through the Strait of Hormuz, carrying more than 1 billion barrels of oil “just over the past few months”.

The US-Iran conflict, which began on February 28, has entered its seventh month after a short-lived peace plan was reached in June.

Further reading:

• Saudi oil exports hit wartime high after pipeline flows resume
• Adnoc Distribution thinks beyond the petrol pump
• How Gulf oil is being shuttled through Hormuz