Prices for all three grades of petrol in the UAE will fall by 24 fils per litre from Sunday, November 1, while diesel will become 5 fils cheaper. This is the first fuel price reduction in the UAE after three consecutive months of increases. The cut was announced despite media reports suggesting that prices could rise again following a surge in global oil prices in October.

According to the Emirates News Agency (WAM), the Fuel Price Committee announced on Saturday, October 31, that the price of Super 98 petrol would fall from Dh4.40 to Dh4.16 per litre, Special 95 from Dh4.28 to Dh4.04, and E-Plus 91 from Dh4.21 to Dh3.97. Diesel will decline from Dh4.80 to Dh4.75 per litre. This represents an average reduction of about 5.6 per cent for petrol and 1.04 per cent for diesel compared with October.

Under the new rates, E-Plus 91 will fall below Dh4 per litre again after one month, while Super 98 and Special 95 will remain above that level. The cost of buying 60 litres of Special 95 will decline from Dh256.80 in October to Dh242.40 in November, saving motorists Dh14.40.

The price reduction comes at the end of a month in which global oil markets recorded significant gains. According to Reuters, Brent crude rose 13.6 per cent in October, with December futures closing at $117.64 per barrel on Friday, October 30.

Before the official rates were announced, Khaleej Times and Gulf News had raised the prospect of a fourth consecutive monthly increase in fuel prices. They also suggested that Super 98 could exceed its record high of Dh4.63 per litre, set in July 2022 following the outbreak of the Russia-Ukraine war. However, Gulf News noted that fluctuations in crude oil prices are not necessarily passed on proportionately at petrol stations, as the monthly average of global refined product prices also plays a role in determining final rates.

Fuel prices in the UAE rose throughout August, September and October. In October, petrol prices increased by between 15.8 and 16.6 per cent, while diesel rose by 11.6 per cent, reaching their highest levels in more than four years. Khaleej Times reported that fuel prices in the UAE had climbed by more than 60 per cent since the outbreak of the Middle East war on February 28. Prices fell in July before resuming their upward trend in August.

The UAE deregulated fuel prices in August 2015. At the end of each month, the Fuel Price Committee, chaired by the Ministry of Energy and Infrastructure, sets uniform rates across all emirates based on the average global price of petroleum products, as well as operating and distribution costs.