Fuel prices in the UAE were reduced for the month of August, the Ministry of Energy announced on Thursday.
The new per litre fuel prices are Super 98-Dh1.73, down from Dh1.88 in July;Special 95-Dh1.62, down from Dh1.77; and E Plus-91-Dh1.55, down from Dh1.70. The diesel price has been reduced from Dh1.85 per litre in July to Dh1.76 for August. The prices will come into effect on August 1.
Fuel prices are linked to international average crude prices, which have been plunging after recovering in the last few months. From less than $30 per barrel in January, oil prices moved up to $50 per barrel last month.
On Thursday, international benchmark Brent crude was trading at around $44 per barrel with the West Texas Intermediate of the US at around $42 per barrel. The outlook for the industry remains weak as crude producers continue to pump out more than the market can consume.
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. The Ministry of Energy liberalised fuel prices last year in July in an effort to reduce emissions and encourage people to use public transport.