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The UAE fuel price committee will soon revise retail fuel prices for December to align them with global rates. Petrol and diesel rates are expected to jump further as average crude prices have remained higher in November compared to previous months.
Since the government deregulated oil prices in August 2015, the UAE has been adjusting retail petrol prices on the last day of each month to align with global rates. Each month, the Ministry of Energy sets fuel prices based on the average global oil prices, whether they have gone up or down.
The retail prices also include the operating costs of distribution companies.
The UAE fuel price committee increased prices by as much as 9 fils per litre in November, pricing Super 98, Special 95 and E-Plus 91 at Dhs2.74, Dhs2.63 and Dhs2.55 per litre, respectively. The cost of diesel also rose marginally to Dh2.67 in November compared to Dhs2.60 in the previous month.
Meanwhile, global oil markets are being pushed up and down on rising or falling supply disruption fears. Oil prices extended gains on Tuesday after dropping in the previous session as investors took stock of a potential ceasefire between Israel and Hezbollah, weighing on oil’s risk premium.
Elsewhere, OPEC+ may consider leaving its current oil output cuts in place from January 1 at its next meeting on Sunday, Azerbaijan’s Energy Minister Parviz Shahbazov told Reuters, as the producer group had already postponed hikes amid demand worries.
The group, which includes the Organization of Petroleum Exporting Countries and allies like Russia, has postponed hikes this year due to demand worries.
Brent crude futures gained 25 cents, or 0.42 per cent, to $73.27 a barrel as of 12:29 GST on November 26, while US West Texas Intermediate (WTI) crude futures rose by 18 cents, or 0.33 per cent to $69.16.