DUBAI – After four consecutive months of fuel price increases, motorists in the United Arab Emirates could finally see some relief in July, as petrol and diesel prices are expected to come down post the US-Iran fragile ceasefire.
Industry estimates suggest the reduction may be smaller than initially anticipated. UAE’s Fuel Price Committee is set to announce the official July prices tomorrow.
The expected price cut comes as global crude oil markets retreat from recent highs triggered by escalating tensions in Middle East. Brent crude was trading at approximately $73.18 per barrel on Monday, while US benchmark West Texas Intermediate (WTI) stood at $69.96 per barrel, reflecting a sharp cooling from the panic-driven surge seen earlier this month.
Amid regional tensions and fears that Strait of Hormuz could face disruptions, Brent crude briefly spiked to between $110 and $120 per barrel, fueling concerns over another wave of rising fuel costs. Although prices have since eased, uncertainty continues to cloud the global energy market amid ongoing geopolitical tensions between the Washington and Tehran.
UAE adjusts domestic fuel prices every month based on the average international crude oil prices recorded during the previous month. With oil now trading significantly below its recent peak, consumers are expected to benefit from lower petrol and diesel prices in July, though analysts caution that the reduction is unlikely to be substantial.
The official fuel price announcement, due tomorrow, will determine the exact extent of the expected relief for UAE motorists.
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