Fuel prices to fall in July after four months of hikes
Petroleum product prices in the United Arab Emirates are expected to decrease in July after rising continuously for the past four months. The expected reduction comes as global crude oil prices have eased in recent weeks.
According to reports, the UAE will announce its new fuel prices tomorrow. Experts believe lower international oil prices could lead to cheaper petrol and diesel for consumers across the country.
Analysts said crude oil prices remained high for some time because of tensions in the Middle East. However, prices later declined in the global market, increasing hopes that motorists will receive some financial relief.
The report added that fresh reports of possible military action between the United States and Iran over the weekend created new uncertainty in the global oil market. As a result, the downward trend in oil prices has not yet become fully stable.
On Monday, Brent crude was trading at around $73.18 per barrel. Despite a slight increase, it remained close to the pre-tension level of about $72 per barrel.
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Meanwhile, US West Texas Intermediate crude rose to around $69.96 per barrel. The latest figures show that oil prices remain much lower than the temporary peaks seen during recent regional tensions.
Earlier, concerns over the Strait of Hormuz pushed the average price of Brent crude to around $106 per barrel during May. At the height of the tensions, prices briefly climbed to between $110 and $120 per barrel.
In the UAE, fuel prices are revised every month based on the average global crude oil prices of the previous month. If international oil prices remain lower, the expected savings are likely to be passed on to consumers in July.
The expected reduction in fuel prices could provide welcome relief for drivers and businesses. However, any new geopolitical tensions may quickly change global oil prices and affect future fuel rates.
