UAE motorists will pay more for fuel in June, marking the fourth straight monthly increase. The rise is smaller than the sharp jumps seen in recent months, though prices remain high as global oil markets continue to face uncertainty.
Super 98 petrol will cost AED 3.95 per litre in June, up 29 fils from May. Special 95 petrol will be priced at AED 3.83 per litre, an increase of 28 fils.
Global oil prices eased in recent weeks. Although Brent crude traded near $91 per barrel by the end of last week, its average price throughout May remained close to $103 per barrel.
The average for April stood near $99. That kept pressure on fuel prices across markets linked to global crude movements.
The Strait of Hormuz continues to influence oil markets. Nearly one-fifth of the world's oil and fuel supplies move through the route.
Shipping activity has improved from earlier disruptions. Full normalization is still some distance away. Traders remain cautious as supply flows have not returned completely to previous levels.
Oil prices are also reacting sharply to developments around possible US-Iran negotiations. Positive signals have pushed crude lower. Fresh uncertainty has triggered quick rebounds.
The UAE follows a market-linked fuel pricing system introduced in 2015. Local fuel rates reflect global oil movements with a one-month gap.
June prices are based on May oil averages. Since crude spent much of May at elevated levels, a major reduction in fuel rates was unlikely. Diesel prices may remain under pressure as global transport and logistics demand stays firm.
Analysts noted fuel prices often enter a stabilisation phase after a sharp oil rally. Significant reductions usually appear only after lower crude prices hold for a sustained period.
Motorists will now watch three key factors: Brent crude staying below $100, progress in US-Iran talks, and smoother shipping through the Strait of Hormuz. These developments are likely to shape fuel prices in the coming months.
Also Read: Brent Crude Falls Over 10% Weekly as US-Iran Ceasefire Eases Strait of Hormuz Risk