This is the first time in the last four months that fuel prices have come down. This will bring great relief to the motorists of the country. Taxi companies and organizations that regularly use the vehicle will benefit from the reduced price.
According to Global Petrol Prices.com, petrol prices in the UAE are more than 40 percent lower than the global average. The average global price of 95 octane petrol is 4.91 dirhams compared to 2.92 dirhams for Special 95 in the UAE this month. Prices in the UAE are 40.5 percent lower than the global average.
Petrol and diesel prices play a crucial role in keeping inflation down in the country. The main contributors to inflation in the UAE are housing, transport, food and beverages and education. About 13 percent of the total inflation is related to the transport sector.
UAE retail fuel prices are revised every month according to the international market. It started from 2015. Earlier the fuel price was not changed frequently according to the market. After yesterday afternoon, WTI and Brent prices were $82.64 and $88.06 per barrel respectively.
The World Bank estimates that oil prices will average $90 per barrel by the end of this year. The World Bank predicted last Monday that the price will drop to $81 next year. He also warned that the Israeli-Palestinian conflict will push the global commodity market into crisis. The World Bank has warned that if there is a major disruption in global supply due to the crisis in West Asia, oil prices will rise to $157 per barrel.
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