Great news for UAE motorists! Petrol prices in the country have witnessed a welcome decrease for the second consecutive month, bringing some relief to residents burdened by rising transportation costs. While the price of diesel has seen a minor increase, the overall downward trend in petrol prices is a positive development.
Monthly Petrol Price Revisions and Recent Fluctuations
The UAE implements a system of monthly fuel price adjustments, with the government announcing revised rates through their national petroleum company, Emarat. This system ensures that domestic fuel prices remain aligned with global market fluctuations.
After a period of steady increases throughout the first half of 2024, July brings a second month of price reduction. Here’s a breakdown of the new petrol prices compared to June:
- Super 98: Drops from Dh3.14 to Dh2.99 per litre
- Special 95: Decreases from Dh3.02 to Dh2.88 per litre
- E-plus 91: Sees a reduction from Dh2.95 to Dh2.80 per litre
While diesel prices remained largely stable throughout the year, July brings a slight increase of one fil per litre, bringing the cost to Dh2.89.
Impact on Taxis and Public Transportation
With petrol prices being a major factor in taxi fares, a natural question arises: will this decrease in petrol prices translate to lower taxi rates in Dubai, where the current per-kilometer rate stands at Dh2.09? While a direct correlation cannot be guaranteed, the reduced fuel cost could potentially lead to negotiations for lower taxi fares in the future.
Historical Context and Long-Term Trends
The UAE’s fuel price system, established in 2015, reflects a commitment to aligning domestic prices with global oil markets. This strategy has resulted in fluctuations over the years, with petrol prices reaching an all-time high of Dh4.63 per litre for Super 98 in July 2022.
Looking back at recent trends, 2023 saw a peak in petrol prices during October, followed by a decline in the later months of the year and into January 2024. The subsequent price increases throughout the first half of 2024 make July’s decrease even more significant.
A Look at Past Prices (January – June 2024)
For a clearer picture of recent fluctuations, here’s a table outlining petrol prices from January to June 2024:
| Month | Super 98 (Dh/litre) | Special 95 (Dh/litre) | E-plus 91 (Dh/litre) | Diesel (Dh/litre) |
| January | 2.82 | 2.71 | 2.64 | 3.00 |
| February | 2.88 | 2.76 | 2.69 | 2.99 |
| March | 3.03 | 2.92 | 2.85 | 3.16 |
| April | 3.15 | 3.03 | 2.96 | 3.09 |
| May | 3.34 | 3.22 | 3.15 | 3.07 |
| June | 3.14 | 3.02 | 2.95 | 2.88 |
Looking Ahead: The Future of Fuel Prices in the UAE
The UAE government‘s fuel price liberalization policy aims to promote responsible fuel consumption and encourage residents to explore alternative transportation options like public transport and electric vehicles. With the recent decrease in petrol prices, it will be interesting to see how this development impacts consumer behaviour and the overall transportation landscape in the UAE.
The decrease in petrol prices for July 2024 brings a sigh of relief to UAE motorists. While diesel drivers may experience a slight increase, the overall downward trend in petrol costs is a positive development. As the global oil market continues to fluctuate, it remains to be seen how fuel prices will evolve in the coming months. Whether this decrease signifies a sustained trend or a temporary reprieve is yet to be determined.