ABU DHABI // Most drivers will pay less for petrol next month than they did when fuel was subsidised.
Super will cost Dh1.81 a litre, Special Dh1.70 and diesel Dh1.87 – all cheaper than in July. E Plus will cost Dh1.63, only 2 fils a litre more than before deregulation.
Prices at the pump soared in August when the Ministry of Energy removed subsidies and introduced monthly price-setting based on global markets. Super rose to Dh2.25, Special to Dh2.14 and E Plus to Dh2.07, although diesel fell from Dh2.90 to Dh2.05.
But petrol prices began to fall in September and will fall again in November for the third consecutive month.
“The last three months show the ministry is keeping its word. Deregulating means referencing pump prices to global prices,” said Sanyalak Manibhandu, a senior analyst at National Bank of Abu Dhabi. “So when global crude prices fall, consumers should pay less.”
When the change in price policy was announced in July, many consumers assumed they would pay more.
“I thought it was going to be much more expensive but simply because I just didn’t know pricing,” said Ruth O’Dwyer, 31, an American teacher who lives in Al Ain.
“I never kept up with oil prices until I realised I had to.”
Prices are set by a committee led by the ministry, using benchmarks linked to international markets. Oil prices play a major part, and Brent crude has more than halved since last year’s highs of US$110 a barrel. There are no signs of oil prices rising significantly any time soon.
“The outlook is bleak for oil prices in the medium term due to oversupply in the market, benefiting UAE drivers,” said Sebastien Henin of The National Investor in Abu Dhabi.
Ms O’Dwyer said she now anxiously watched crude oil prices. “Now I think of how much it will go up once prices rise again, given they’ve been so low.”
lgraves@thenational.ae
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