February 2023 ,UAE petrol and diesel prices to increase

Feb

February 2023 ,UAE petrol and diesel prices to increase

The price of oil influences the costs of other production and manufacturing across the United States. For example, there is a direct correlation between the cost of gasoline or airplane fuel to the price of transporting goods and people. A drop in fuel prices means lower transport costs and cheaper airline tickets.

The cost of petrol is set to rise by about 10 per cent in February, it has been announced.

This comes after a significant reduction in prices at the pump in January amid a drop in global oil prices.

The breakdown in price per liter for February is as follows:

• Super 98: Dh3.05 — from Dh2.78 in January (up 9.71 per cent)

• Special 95: Dh2.93 — from Dh2.67 in January (up 9.74 per cent)

• Diesel: Dh3.38 — from Dh3.29 in January (up 2.74 per cent)

• E-plus 91: Dh2.86 — from Dh2.59 in January (up 10.42 per cent)

The UAE liberalized petrol prices in 2015 to allow rates to move in line with the market.

In 2020, prices were frozen by the Fuel Price Committee after the onset of the coronavirus pandemic. The controls were removed in March 2021 to reflect the movement of the market once again.

Brent crude, the benchmark for two thirds of the world’s oil, has endured a bumpy ride in January, and is now on course for a third consecutive monthly decline as concerns about a US slowdown overshadowed optimism on China.

Energy traders will be closely following Wednesday’s OPEC meeting, where delegates are widely expected to recommend continuing the group’s existing oil output policy.

The group, which consists of 23 oil-producing countries, stuck to a production cut of 2 million barrels per day in December amid uncertainty over crude sanctions on Russia.

Markets are also awaiting the results of a US Federal Reserve policy meeting this week, where the central bank is expected to raise interest rates.

Brent was 1.04 per cent lower at $84.02 a barrel at 1.07pm UAE time while West Texas Intermediate, the gauge that tracks US crude, was down 1.41 per cent at $76.80 a barrel.