UAE oil prices are set for a potential surge in April, even as global markets reel from a recent price slump. The government committee responsible for monthly pricing is expected to release its April figures on March 31, with adjustments tied closely to international benchmarks.
UAE fuel prices are scheduled to rise in April as Brent crude trades above $106 a barrel. The sudden rise is driven by supply disruptions following Iran's blockage of the Strait of Hormuz. This resulted in the halt of oil flow through the Arabian Gulf.
As reported by the Iranian state media, on the evening of March 25, Tehran rejected a 15-point US ceasefire proposal by US President Donald Trump, pushing prices higher. Earlier, Trump had said that Iran agreed not to pursue a nuclear weapon, as negotiations between the two sides continue.
In line with the current market instability, Rania Gule, senior market analyst at XS.com, explained that, “Fuel prices in the UAE are likely to increase next month, or at the very least remain at elevated levels, primarily driven by continuing geopolitical tensions in the Middle East, particularly if no near-term de-escalation agreement is reached.”
In March, Super 98, which is a high-octane premium grade used in sports cars and luxury vehicles, increased by 5.7 per cent from its existing price of Dh2.59 a litre.
After seeing a high rate in December, the oil prices fell in January and February. This took place after Special 95 Dh2.58, Super 98 reached Dh2.70, and diesel reached Dh2.85. On Thursday, Brent, the benchmark crude oil for two-thirds of the world’s seaborne crude, rose 3.8 per cent to $106.20 per barrel as of 2:03 pm ( UAE time zone). Similarly, in the West Texas Intermediate, the US gauge increased by 3.7 per cent from $93.64.
Oil has surged since war broke out on February 28, after Iran struck energy facilities across Qatar, the UAE, and Saudi Arabia. With geopolitical risks intensifying and oil markets reacting swiftly, the chances of a near-term drop in fuel prices appear low, leaving consumers looking for sustained increases.