The Fuel Price Committee of the UAE is all set to declare the modified prices in July to bring rates in harmony with the global rates. The Committee reduced the costs for June, taking them to the lowest level in the fourth month.
In June, Super 98 petrol cost Dh2.95 a liter; Special 95 has also increased to Dh2.84 per liter while E- Plus 91 costs Dh 2.76 a liter. After the UAE deregulated retail prices in August 2015, the modified prices were generally declared on the last day of the month.
Besides, due to slower growth in the global economy, global petrol prices remained suppressed in June. On Thursday, Brent crude traded at $7.40 a barrel and US West Texas Intermediate (WTI) at $69.57.
Naeem Aslam, a chief investment officer of Zaye Capital Markets, said the black gold is also out of luck, as the crude oil inventory data confirmed yesterday that traders are concerned about weak demand, resulting in higher oil supply.
He added that ” the focus continues to remain on China and its economic growth, which is not displaying tangible signs of growth in terms of financial numbers, but this doesn’t mean that oil prices will experience any significant selloff.
Aslam added, “However, it’s likely that the days may be over for the crude oil price to trade back in the 80-dollar price range. We believe the new range for gold prices is now more likely to be below the $70 price market. On the back of strong US GDP data and a possible improvement in Chinese economic numbers, we might see rising prices at the $75 price mark, but anything above that proof mark is unlikely under the current technique.”
Despite the deregulation, retail petrol prices in the UAE are cheaper than the global average rates.
According to globalpetrolprices.com, the average price of petrol worldwide is Dh4.75 per liter, against Dh2.84 in the UAE.
