Petrol Prices in the United Arab Emirates
The petrol prices in the United Arab Emirates are likely to decrease in May 2025, following a setup in April due to the US tariff and concerns about a slowing global economy and fear of recession.
Factors Affecting Petrol Prices
At the beginning of April, Brent fell to $62.8 per barrel as the tariff war escalated. Throughout April, Brent was mainly traded in the $60 range. On Monday morning, Brent was trading at $66.9 and WTI at $63.13. The average price in April was $66.6 per barrel, compared to almost $71 per barrel in the previous month.
Current Petrol Prices in the UAE
In the United Arab Emirates, petrol prices were reduced for the second month in a row in April 2025. Super 98, Special 95, and E-Plus 91 were sold at 2.57 dH, 2.46 dH, and 2.38 dH per liter, respectively. The petrol prices for the coming month are usually revised on the last day of each past month.
Deregulation of Petrol Prices
The UAE associated their local retail prices with international benchmarks in 2015 as part of their deregulation drive. In addition to the tariff, the decision by OPEC+ to increase oil production faster than expected also burdened crude oil prices.
Market Outlook
In its second-quarter outlook, Saxo Bank said that Brent crude is expected to trade in a range of $65 to $85 per barrel. The US administration’s decision to tighten sanctions against the Iranian oil trade network and impose a 25% tariff on nations that import Venezuelan crude oil has also affected the market.
Impact of US Sanctions
The US sanctions against the Iranian oil trade network and the tariff on Venezuelan crude oil imports indicate a clear change in the White House’s willingness to sacrifice low oil prices for greater strategic goals. This measure, along with additional short cover from underborn hedge funds, may put pressure on China and increase the pressure on Iran and Venezuela.
