UAE motorists could receive some relief this July as petrol and diesel prices are expected to decline after four consecutive months of increases. The expected reduction follows a fall in global crude oil prices after tensions between the United States and Iran eased with a fragile ceasefire.
The UAE Fuel Price Committee is scheduled to announce the official petrol prices for July tomorrow. Although fuel prices are expected to come down, industry experts believe the decrease may be smaller than many consumers had hoped.
Global oil prices have fallen from the sharp highs recorded earlier this month. On Monday, Brent crude was trading at around $73.18 per barrel, while US benchmark West Texas Intermediate (WTI) stood at approximately $69.96 per barrel. The decline reflects improved market sentiment after fears of a major regional conflict began to ease.
Earlier, crude oil prices had surged dramatically as rising tensions in the Middle East raised concerns about possible disruptions to shipping through the Strait of Hormuz. During the peak of the uncertainty, Brent crude briefly climbed to between $110 and $120 per barrel, increasing fears of another round of higher petrol prices worldwide.
Although oil markets have stabilized, analysts say geopolitical risks remain, and any fresh escalation between Washington and Tehran could once again affect global energy prices.
The UAE reviews and updates domestic fuel prices every month based on the average international crude oil prices recorded during the previous month. Since global oil prices have dropped considerably from their recent peak, consumers are likely to benefit from lower petrol and diesel rates in July.
However, market analysts caution that the expected reduction may be modest because international oil prices remain higher than their long-term averages.
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