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UAE cuts September fuel prices by more than 8 per cent

Octane 91 petrol will be sold at AED1.89, with a 9.3 per cent decrease in rates, while diesel will be available for AED 1.86 per litre

The Ministry of Energy has announced new fuel prices for the month of September across all petrol stations in the UAE. This is the second time that the government has made such announcement after it decided to review prices of petrol and diesel against average international levels.

After the sharp hike in August, the petrol prices have been cut by more than eight per cent. It will be sold at AED1.89 per litre for E-plus (Octane 91 petrol), AED 1.96 per litre for Special (Octane 95 petrol) and AED2.07 per litre for Super (Octane 98 petrol).

As the government scrapped transport fuel subsidies last month, the Fuel Price Committee, headed by HE Dr Matar Al Nyadi, Undersecretary for the Ministry of Energy, had increased petrol prices in August by 24.4 per cent to sell at AED2.14 per litre when it was AED1.72 earlier.

Meanwhile, diesel has seen a further drop in price for the next month. With a 9.3 per cent decrease in rates, it will be sold to consumers at AED 1.86 per litre from September 1. It had fallen 29 per cent in August.

“The prices are based on the average global prices for diesel and gasoline with the addition of operating costs and profit margins of the distributing companies. The Fuel Price Committee will next meet on September 28 to agree on the prices for the month of October,” says Al Nyadi.

The decision to deregulate fuel prices came in July this year, apparently after the International Monetary Fund said the UAE will post its first fiscal deficit since 2009 and estimated that the country spends $7 billion annually on petroleum subsidies, which kept prices lower than the international average.

Credit ratings agency Moody’s had earlier said the new fuel price measures are credit positive for the UAE and Abu Dhabi as they will bolster government finances dented by the downturn in global oil prices.