Government Reduces Fuel Prices By 8% For September 2015
- August 27, 2015
- Posted by: RKonnect
- Category: Others
UAE Government has announced the new fuel prices for the month of September which will be 8.4% lower than the current month price. The decision which is taken in line with the declining global oil prices is likely to make UAE residents happier. Moreover, oil prices are continuously falling in International Oil Market, which means UAE residents, will now enjoy cheaper fuel not only for September but for the next three months preceding September.
New Fuel Prices Effective from 1st September 2015
Oil Price Fluctuations – July & August 2015
The Graph above represents the Oil Price fluctuation for the month of July and August 2015 depicting the fluctuating, yet downward trending Oil Prices. During this period, OPEC Basket price fall from $59.81 to $40.51 per barrel (32.26%). Additionally, both ICE Brent and WTI Crude suffered price drops of 31.48% and 31.34% respectively, closing at $43.14 and $40.2 per barrel respectively on 26th August 2015. Even though, Dubai Crude has shown some signs of price stability, but it fell by 22.86% since the beginning of July ending up $47.04 per barrel, which is still the highest priced Crude available (as of 26th August 2015).
Triggering Factors – USA, Europe and China
The arrival of winters in United States and Europe will mean reduction in driving, which will significantly affect both demand and consumption of Oil and Petroleum products and is likely to further push the benchmark oil prices down in the coming months. On the contrary, China’s export continues to decline, albeit lower demand from the European Union. Stock prices at Shanghai Composite (Chinese Stock Market) are under tremendous pressure and as a result have fluctuated and tumbled. It is likely that demand for Oil and Petroleum products in China will reduce further if exports fail to increase in coming time.
Based on above trend of oil prices, consumers in UAE should stop worrying about the fuel prices for the next few months and enjoy the most competitive fuel rates based on International Oil Market conditions. This is due to the fact that change in fuel prices is subject to change in demand and consumption patterns of USA and China.
Research Konnection: This research report is compiled by Team Research Konnection; a Dubai based market research and business consulting firm that is focused on providing strategic advice to Investors. If you are looking for more detailed analysis on UAE’s Automobile and Energy Sectors or want us to prepare feasibility study, then feel free to contact us on firstname.lastname@example.org