A petrol pump attendant at an Eppco filling station. Image Credit: Gulf News Archives

Abu Dhabi: Fuel prices in the UAE are set to go up for the month of September with diesel and petrol becoming costlier by 12 fils each, the Ministry of Energy announced on Tuesday.

The new per litre prices are Super 98-Dh2.01, up from Dh1.89 in August; Special 95-Dh1.90, up from Dh1.78; E Plus-91-Dh1.83, up from Dh1.71.

And diesel price has been increased to Dh2.00 per litre in September from Dh1.88 in August.

This is the sixth increase in rates for the fuel prices this year after the Ministry of Energy hiked prices in January, February, March, May and August in line with the international crude oil prices which have been fluctuating due to supply, demand equation.

Brent, the global benchmark is currently trading at around $52 per barrel, whereas US crude West Texas Intermediate at $46.85 per barrel.

The fuel prices are calculated based on the average global prices for diesel and petrol with the addition of operating costs and profit margins of the distributing companies in the UAE.

Global oil prices are trending higher compared to last year due to an agreement between Opec and non-Opec members to cut production by about 1.8 million barrels per day starting from January this year to support oil prices.

The deal is valid till March 2018 and is likely to be extended further to reduce oversupply in the market with Saudi Arabia and Russia backing the extension.

“If the proposal for extending the production cutback until June 2018 is ratified, this will add further weight to the optimism supporting the prices, as we are currently experiencing a better than expected global oil demand this year, which is likely to continue well into the first half of 2018,” Mihir Kapadia, CEO and Founder of Sun Global Investments in London told Gulf News by email.

He predicted a price in the range of $55 to $60 per barrel for global crude oil by early 2018.