Motorists in the UAE will now have to pay less for petrol in September. The fuel price committee has announced a decrease of more than 4 percent for drivers using Special 95(a type of petrol). Fuel prices in the UAE were liberalized in August 2015 to adjust as per the market.
At the start of 2019, the motorists saw a substantial drop in prices when the cost of Special 95 fell below Dh2 a litre for the first time in more than a year.
In July a fall of 10 percent was seen, as compared to the price in June. Prices again rose to 3 percent in August. Worries about a slowdown in economic growth and the impact on oil demand due to the trade war between the world’s two biggest oil consumers have immensely affected the oil prices.
Oil markets have been volatile amid a US trade war with China, and supply concerns that have come about due to tensions in the Middle East. The oil markets are expected to balance out in the second half of 2019.
Even though oil market has been through a period of oversupply but from a fundamental perspective the worst appears to be over for now as on the supply side, the Opec+ group is working hard to underpin prices and compliance with promised cutbacks has been surprisingly high, reaching 134 percent in July.”