Petrol price in UAE is set to fall by 15 fils per litre starting August 1, a first in five months. The Ministry of Energy had announced the change on 28th July 2016.
The new fuel prices on per-litre basis are as follows:
At the same time, price of diesel is also going to shoot down by 0.9 fils. In July the price of diesel was Dhs1.85 and in August is expected to be Dhs1.76.
Prices of international average crude oil directly affects of the fuel prices. It was only recently that the prices had started to improve after a long-time drop. The prices of oil, per barrel had increased to $50 last month from $30, in January.
From the analysis of the industry, it is at a rather week position at the moment. These conditions are the direct results of rise in continuous over production of crude oil in comparison to the low rate of consumption of the same.
Generally, the price of fuel is estimated and set on the basis of the average global prices of petrol and diesel. At the same time, profit margins and cost of operation of the UAE based companies also play an influential role.
Last year in July, the Ministry of Energy had increased the prices of fuel with the intention of encouraging commuters to use public transports and for the purpose of reducing pollution.
Meanwhile, the Dubai government has predicted an increase in the use of public transport by 16% by the end of this year. The Road and Transport Authority (RTA) had made this announcement on 30 July 2016, Saturday.