UAE Residents Adapt to Rising Petrol Prices Amid 3rd Consecutive Increase

As fuel prices in the UAE climb for the third consecutive month, residents are implementing strategies to minimize their petrol usage. 

The newly announced prices for April 2024 are poised to be the highest in six months, prompting consumer concerns.

April Price Adjustments:

April prices have surged by approximately 3.9%, with Super 98 petrol priced at Dh3.15 per litre, Special 95 petrol at Dh3.03, and E-Plus 91 at Dh2.96. 

However, diesel prices have slightly decreased to Dh3.09 per liter from Dh3.16 in March.

For UAE residents like Faten Mohammed, the price increase translates to a significant financial burden. From Ajman to Jebel Ali, Mohammed anticipates an additional expenditure of nearly Dh500 on petrol next month, necessitating adjustments in her commuting habits.

Adaptation Strategies:

Mohammed has altered her timing and route to mitigate the impact of rising petrol costs, opting for less congested roads during off-peak hours. 

Similarly, other residents, like Shiyaz Iqbal from Dubai, are considering alternative ways of transportation, such as the metro, to offset the escalating petrol expenses.

Economic Considerations:

The surge in petrol prices can be attributed to global factors, including fluctuations in crude oil prices. In March, Brent averaged around $84.25 per barrel, compared to $81.3 the previous month, reflecting an increase of $3. 

These developments have prompted consumers like Iqbal to reconsider vehicle purchases, fearing further escalation in petrol costs.

Market Dynamics:

Crude prices’ upward trajectory, reaching a four-month high in mid-March, has been influenced by the International Energy Agency’s projections of a tighter market. 

Additionally, heightened demand growth forecasts for the year have contributed to the surge in prices, with WTI and Brent closing at $83.17 and $87.0 per barrel by the end of the week.