UAE cuts gas prices by January 2024; Rate now among the lowest in a year

After a reduction of 4.8%, it is approaching January 2023 prices

The United Arab Emirates cut gasoline prices for the third consecutive month on Sunday, putting local retail fuel rates for January 2024 almost on par with the lowest level in a year.

The Fuel Price Committee cut gasoline prices by 14 fils, or 4.8 percent, per liter by January 2024, setting the prices of Super 98, Special 95 and E-Plus 91 at Dh2.82 , 2.71 dirhams and 2.64 dirhams, respectively. It is close to January 2023 prices, when the three variants were priced at Dh2.78, Dh2.67 and Dh2.59 per litre.

In 2023, prices hit their lowest level in January and peaked in October, when Super 98 reached a price of Dh3.44 per liter. But it was still lower than the previous year, when gasoline prices hit an all-time high of more than Dh4 a liter following the war between Russia and Ukraine that began in early 2022.

Since the UAE liberalized oil prices in 2015, local retail gasoline prices are revised at the end of each month to align with global rates.

Gasoline prices fell after prices fell by about $5 per barrel globally in December.

The price of Brent averaged $77.34 in December 2023, lower than rates in November 2023, when Brent averaged around $82 a barrel.

Brent mostly traded in the range of $80 a barrel in December and $70 in November, meaning prices traded at a lower rate in December. This was reflected in the price reduction in the United Arab Emirates for January 2024.

Petrol prices in the UAE are more than 43 percent cheaper compared to the global average. One of the world’s largest crude oil producers, the United Arab Emirates was among the top 25 countries in terms of lowest retail gasoline prices in December.

News Source: Khaleej Times