The UAE has announced that fuel prices in the country will slashed from September 1st, and after six months of increased rates, motorists will pay less for both petrol and diesel, according to media reports.
The UAE fuel price committee announced that from September 1, petrol prices will be decreased by 1.2 percent and diesel prices will be down by 2.9 percent. Super 98 will be Dh2.55 per litre less from Dh2.58 this month and Special 95 will drop from Dh2.47 to Dh2.44 per litre. Diesel priced at Dh2.45 per litre in August will be slashed by 2.9 percent.
Additionally, both crude oil and gasoline were hit hard due to volatile trading this month as investors in both started to weigh in how much threat the delta variant presents and how the consumption will be affected by it. Traders and investors will also take into account the effects of Hurricane Ida and discuss if the Organisation of Petroleum Exporting Countries (OPEC+) and its allies will go ahead with an increase in output.
It has also been predicted by the experts that the southeast US might experience an increase in gasoline prices during the end of summer if refineries suffer extensive damage or can’t get power and are forced to stay shut for an extended period. This could also result in inflation in America.
According to the International Energy Agency (IEA), global oil demand will rise by 4 million barrels per day in 2021 and return to pre-pandemic levels by the end of 2022. While oil demand slumped for a while last year due to the restrictions imposed to contain the spread of Covid-19, it has started to pick up once again as the world is slowly starting to get back into its old rhythm.