UAE reduces petrol prices for January 2024; rate now among lowest in a year

The UAE reduced petrol prices for the third consecutive month on Sunday, bringing local retail fuel rates for January 2024 nearly at par with the lowest level in a year.

The Fuel Price Committee slashed petrol prices by 14 fils, or 4.8 per cent, per litre for January 2024, pricing Super 98, Special 95 and E-Plus 91 at Dh2.82, Dh2.71 and Dh2.64, respectively. It’s close to the prices in January 2023, when the three variants were priced at Dh2.78, Dh2.67 and Dh2.59 per litre.

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In 2023, prices hit the lowest in January and peaked in October when Super 98 was priced at Dh3.44 a litre. But it was still lower than the previous year when petrol rates hit an all-time high of over Dh4 a litre in the wake of the Russia-Ukraine war that started in early 2022.

Since the UAE deregulated oil prices in 2015, local retail petrol prices are revised at the end of every month to be aligned with global rates.

Petrol price was reduced after prices dropped by around $5 a barrel globally in December.

Brent price averaged $77.34 in December 2023, which is lower than November 2023 rates when Brent averaged around $82 a barrel.

Brent mostly traded in the range of $80 a barrel in December and $70 in November, signifying that the prices traded at a lower rate in December. This was reflected in the reduction of prices in the UAE for January 2024.

Petrol prices in the UAE are cheaper by over 43 per cent when compared to the global average. One of the world’s largest crude producers, the UAE was among the top 25 countries in terms of lowest retail petrol prices in December.