Abu Dhabi: Fuel prices in the UAE will increase slightly in September, according to an announcement by distribution companies on Wednesday.
Super 98 will be costlier by 2 fils, increasing from Dh2.57 in August to Dh2.59 in September. Similarly, Special 95 price will go up from Dh2.46 in August to Dh2.48 in September, and E Plus from Dh2.38 to Dh2.40. Diesel will be costlier by one fils, going from Dh2.63 to Dh2.64.
Fuel prices have risen as global crude oil prices trend higher due to various factors, including geopolitical tensions in the Middle East as well as US President Donald Trump’s decision to reimpose sanctions on Iran, one of the world’s biggest oil producers.
Thousands of barrels of Iranian oil is expected to go off the market, once sanctions related to oil export curbs come into effect in November.
Though the Organisation of the Petroleum Exporting Countries (Opec), along with non-Opec members like Russia, decided to increase production to about one million barrels per day to cool down oil prices during a meeting in Vienna in June, prices continued to climb.
Analysts predict oil prices to trend in the range of $70 to $80 per barrel for the rest of the year.
“The battle between fears of a supply-crunch driven by Iran sanctions and a further collapse in Venezuelan production on one side, and the future risk to demand as a result of global growth slowdown on the other, is likely to keep the oil market range-bound for now,” said Ole Hansen, head of commodity strategy at Saxo Bank.
International benchmark Brent was trading at $76.14 per barrel, up by 0.25 per cent at around 2.53pm UAE time on Wednesday. US crude West Texas Intermediate was at $68.78 per barrel, up by 0.36 per cent.
Fuel prices were higher in the months of February, May, June and August and were reduced for March and July, data from the Ministry of Energy and Industry website shows.