UAE is set to announce petrol prices for December in line with global fuel prices. Petrol and diesel prices saw an increase in November, after seeing a steady fall for three consecutive months.
UPDATE: The UAE announces price of petrol and diesel will FALL in December
Petrol prices mirror the price of oil, with consumers feeling the pinch as prices increase.
Overview of UAE petrol prices in 2022
| Prices in AED per litre | E-Plus 91 | Special 95 | Super 98 | Diesel |
|---|---|---|---|---|
| November 2022 | 3.13 | 3.20 | 3.32 | 4.01 |
| October 2022 | 2.85 | 2.92 | 3.03 | 3.76 |
| September 2022 | 3.22 | 3.30 | 3.41 | 3.87 |
| August 2022 | 3.84 | 3.92 | 4.03 | 4.14 |
| July 2022 | 4.44 | 4.52 | 4.63 | 4.76 |
| June 2022 | 3.96 | 4.03 | 4.15 | 4.14 |
| May 2022 | 3.48 | 3.55 | 3.66 | 4.08 |
| April 2022 | 3.55 | 3.62 | 3.74 | 4.02 |
| March 2022 | 2.75 | 2.82 | 2.94 | 2.88 |
| February 2022 | 2.75 | 2.82 | 2.94 | 2.88 |
The price for crude has increased around 10 percent in October after the OPEC+ alliance announced it would make sizable cuts to output. This agreement is set to begin taking effect from November.
Oil prices have dipped from earlier this year, dropping around 25 percent of its value since June, as concerns over a global inflationary macroeconomic environment have increased fears of an economic downturn.
OPEC recently released projections suggesting that the global demand for oil will continue to grow for another decade. The group’s World Oil Outlook report suggests that world oil consumption will hit 109.5 million barrels a day in 2035 and hold the same level for another decade.
Why UAE petrol prices are increasing
- Low energy supply post-pandemic as suppliers struggled to keep up with the increase in demand
- Increase in global crude oil prices after the Russia-Ukraine war in February
- Risk of recession, inflationary pressures and economic uncertainty
In July the UAE announced that it will be subsidising part of petrol prices for low-income citizens, as it introduces an “inflation allowance” amid rising costs of basic goods and services in the country.
The new allowance would provide a monthly subsidy of 85 percent of the fuel price increase over AED2.1 per litre, state news agency WAM reported.
According to the fuel subsidy scheme, the head of a family will receive a monthly subsidy of 300 litres, while working wives will receive a subsidy of 200 litres.
The inflation allowance will also provide food, electricity, and water subsidies, the report showed.
Rising UAE petrol prices are also leading residents to consider switching to electric vehicles.
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