UAE petrol prices to rise by about 16% in October

The United Arab Emirates is set to raise its petrol prices by around 16% in October, marking the third consecutive monthly increase. The hike in fuel costs comes as global oil markets remain volatile due to uncertainty surrounding a potential US-Iran truce. Super 98 will see a 15.7% rise, Special 95 and E-Plus 91 will increase by nearly 16% and 16.6% respectively, while diesel prices will climb by 11.6%.

Compared to February, prior to the Iran war, fuel prices in the UAE are approximately 80% higher. Super 98 will cost Dh4.40, up from Dh3.80 in September, Special 95 will be Dh4.28, down from Dh3.69, E-Plus 91 will be Dh4.21, up from Dh3.61, and diesel will be Dh4.80, up from Dh4.30. Fuel costs in the UAE have been linked to the global oil market since 2015 when deregulation was introduced.

However, petrol prices do not always move in tandem with global benchmarks. Factors such as the conflict between the US and Iran, the Strait of Hormuz, and the attacks by Houthi rebels on Saudi Arabian facilities in the Red Sea influence monthly fuel costs. Despite recent hopes that a peace deal could be reached, talks between the US and Iran have stalled, with both sides engaged in quiet negotiations in New York.

Oil prices have rebounded slightly, with Brent near $110 and West Texas Intermediate topping $105, but the recent easing of prices is not expected to last.