As the UAE gears up for the new year, all eyes are on the impending announcement of revised petrol and diesel prices for January 2024. The Fuel Price Committee, responsible for determining these rates, has garnered attention, especially after consecutive reductions in the past two months.
In 2023, petrol prices peaked in October, soaring to Dh3.44 per liter for Super 98. However, a significant drop was observed in January of the same year, with Super 98 priced at Dh2.78 per liter. In a recent move, December saw a notable reduction, with Super 98, Special 95, and E-Plus 91 prices cut by approximately seven fils to Dh2.96, Dh2.85, and Dh2.77 per liter, respectively.
The global oil market played a pivotal role in influencing these changes. In December 2023, the Brent price averaged $77.34, showcasing a decrease from the November rates, which hovered around $82 per barrel. Interestingly, Brent predominantly traded in the $80s per barrel in December, a notable shift from the $70s range observed in November, signifying a price decline.
Closing at $77.04 per barrel on Friday, Brent experienced a marginal decrease of 0.14%, culminating in a total loss of over 10% throughout the year 2023. The fluctuating global oil prices have been closely monitored, as they directly impact the monthly revisions in local retail petrol prices in the UAE.
Since the deregulation of oil prices in 2015, the UAE has aligned its local petrol rates with global trends. This practice involves monthly revisions, ensuring residents pay prices reflective of the current global market conditions. The anticipation now centers around whether UAE residents will receive a New Year’s gift through reduced petrol prices. This question will be answered when the Committee reveals the revised rates for January 2024.
Conclusion: As we await the announcement from the Fuel Price Committee, the intricate dance between global oil prices and local petrol rates continues. The recent reductions and the global downward trend in oil prices suggest the possibility of a positive outcome for UAE residents. However, the volatility of the oil market makes predictions challenging. Only time will unveil whether the new year will usher in a welcomed relief at the pumps for the residents of the UAE.
