UAE cuts petrol prices by over 8% in September

The United Arab Emirates has cut fuel prices for September, following a steep rate rise in August, the ministry of energy revealed on Thursday.

The price of one litre of octane 95 gasoline will cost Dhs 1.96 from September 1, down 8.4 per cent compared to Dhs 2.14 in August, the ministry said. The rate for one litre of octane 98 gasoline has also been reduced by 8 per cent and has been set at Dhs 2.07.

The ministry also fixed the diesel price at Dhs 1.86 per litre for September, a drop of 9.3 per cent compared to Dhs 2.05 in August.

Undersecretary at the ministry Matar Al Nyadi said: “The prices are based on the average global prices for diesel and gasoline with the addition of operating costs and profit margins of the distributing companies. The fuel price committee will next meet on September 28 to agree on the prices for the month of October.”

The UAE announced in July that it would deregulate gasoline and diesel prices from August 1 and introduce a new pricing policy linked to global levels.

Petrol prices were hiked by 24 per cent in August, while diesel rates fell 29 per cent.

However, global oil prices fell sharply in August, even touching six-and-a-half-year lows this week after the Chinese stock market crashed and concerns of oversupply grew.

Brent crude is currently hovering at around $44 per barrel, compared to its peak of around $115 in June last year.

But experts have said that low oil prices will allow the UAE to comfortably transition into its new fuel policy.

Deregulating oil prices will help the country’s economy and boost government finances, the Institute of Chartered Accountants in England and Wales said.

According to the International Monetary Fund, the move will save the UAE about $500m by the end of this year, just over 0.1 per cent of its gross domestic product.