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UAE Petrol Prices Drop by 12%, 40% Below Global Average

Petrol costs in the UAE have dropped significantly, by more than 40% compared to the global average.

Petrol prices in the UAE have seen a significant drop, with a reduction of over 40 percent compared to the global average. 

This move comes as the UAE’s Fuel Price Committee lowered retail petrol prices for November.

Price Reduction Details:

The reduction applies to all three petrol variants: Super 98, Special 95, and E-plus 91, now costing Dh3.03, Dh2.92, and Dh2.85 per liter, respectively. 

These prices are among the lowest recorded in the past four months.

This marks the first time in four months that retail fuel prices have been reduced in the UAE, providing welcome relief to motorists.

UAE vs. Global Petrol Prices:

Global petrol price comparison reveals a stark difference. According to globalpetrolprices.com, the average global price of 95-octane petrol (equivalent to the UAE’s Special 95) is Dh4.91, compared to Dh2.92 in November. 

This significant price difference, approximately 40.5 percent, showcases the affordability of petrol in the UAE.

Inflation and Fuel Prices:

Petrol and diesel prices are crucial in containing inflation in the UAE, particularly in sectors like housing, transportation, food and beverages, and education. 

Transportation alone accounts for nearly 13 percent of the total inflation weightage, according to Trading Economics.

UAE’s Monthly Fuel Price Revisions:

Since 2015, the UAE has been revising monthly retail fuel prices as part of its deregulation policy, aligning the rates with global market prices. 

Currently, WTI and Brent crude oil prices are trading at $82.64 and $88.06 a barrel, respectively.

World Bank’s Oil Price Projections:

The World Bank recently projected that oil prices will average $90 a barrel in the fourth quarter of this year but are expected to fall to $81 next year. 

However, the report also highlights the potential impact of geopolitical conflicts, such as the Palestine-Israel conflict, which could “push global commodity markets into uncharted waters.” 

In case of significant supply disruptions in the Middle East, oil prices could surge as high as $157 a barrel.

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