UAE Petrol Prices: Will Fuel Rates Drop In April?

Petrol prices in the UAE are likely to drop for the month of April as global prices stayed on the lower side in March .

Brent price averaged around $70.93 in March compared to $75 in February. Petrol prices in the UAE are expected to be revised down when new prices are announced for the next month in the coming days. The UAE government usually announces revised rates on the last day of every month.

In March, Super 98 was priced at Dh2.73 per litre, Special 95 at Dh2.61 and E-Plus at Dh2.54. Globally, Brent was trading at $74.11 per barrel and WTI at $70.01 a barrel in early trade on Friday.

Joseph Dahrieh, managing principal at Tickmill, said crude oil might see increased volatility as market participants navigate the uncertainty surrounding recent global developments.

“The market reacted to the announcement of US tariffs on countries buying Venezuelan oil and to the mounting concerns over the broader economic impact of escalating trade tensions, which threaten to weaken global demand.

“In this regard, the uncertainty surrounding the potential reduction in Venezuelan oil exports could tighten supply in the short term to a certain extent. Similarly, sanctions on Iranian oil could contribute to a potentially tighter market. However, economic slowdown fears due to tariff-induced costs could continue to pressure crude prices,” said Dahrieh.

Meanwhile, changes in Opec+ crude production could affect the market. The organisation is expected to increase oil output, which could further weigh on prices. However, the group's efforts to address overproduction from certain members could provide a floor for prices.

After weeks of downward pressure, oil prices rebounded to a certain extent over the past two weeks. The recovery marked a notable shift in market sentiment, with both benchmarks recording weekly gains.

George Pavel, general manager at Naga Middle East, said escalating tensions in the region have supported oil prices.

“Recent US military strikes against Houthi rebels in the Red Sea and ongoing Israeli operations in Gaza have heightened concerns about the region. However, developments in the Russia-Ukraine conflict could act as a counterbalance if peace talks succeed, creating more volatility,” he said, adding that in addition to the market's volatility, the US' announcement of new tariffs on Venezuelan oil buyers, set to take effect on April 2, 2025, has created ripples through the global oil markets.

“This policy shift, coupled with existing sanctions on Russian and Iranian oil producers, has raised concerns among traders,” he added.

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