UAE fuel prices for September: Will petrol ease as oil costs fall?

Dubai: UAE motorists may experience stabilised or reduced fuel prices in September if the ongoing decline in global oil prices persists into August's final days, according to recent wire material. Brent crude oil prices dropped as much as 2.7% to $88 a barrel on Tuesday, signaling a potential second consecutive decline after a steady increase for 13 out of 14 sessions.

This trend could positively impact the UAE's September fuel price review, which is conducted monthly based on international oil and refined product prices. However, the outlook remains uncertain as geopolitical tensions between the United States and Iran, coupled with fluctuations in supply and demand, continue to influence oil prices.

UAE fuel rates have seen a significant increase over the past year, with Super 98 priced at Dh3.60 in September 2022, up from Dh2.45 in February. The UAE Fuel Price Committee's August prices reflect higher global oil prices, with petrol and diesel prices starting at Dh3.60 and Dh3.80, respectively, compared to Dh2.45 and Dh2.72 in February.

The latest decline in Brent crude at $88.10 suggests a more favourable environment for the September fuel price review, depending on the average international prices recorded across August. The biggest variable remains geopolitical developments surrounding Iran and regional energy flows, which can quickly alter the outlook.