Fuel prices will increase in the UAE from October

Things are going to take a different turn in October as fuel prices of unleaded petrol 98 will be increased from Dh1.75 per liter to Dh 1.81 per liter while petrol 95 will be increased from Dh1.64 per liter to Dh1.70 per liter.
Following a 6% increase in the global fuel prices, UAE residents will experience an increase in fuel prices beginning on Saturday 1st of October. The increase in global crude prices was as a result of key producers ceasing all production activities since 2008.
According to the UAE Ministry of Energy, the prices of all forms of petrol will be increased on Saturday. Super 98 will be costing Dh1.81 per liter, Special 95 at Dh1.70 and E Plus 91 at Dh1.63 per liter. Furthermore an increase in the prices of diesel at Dh1.76 a liter, a 2.3% increment will be experienced.
The prices of fuel is determined by the UAE’s fuel pricing policy and their prices are linked to the global prices. This process began in August 2015.
According to reports, the UAE’s fuel policy can as a result of the government’s action to withdraw all benefits on fuel in 2015 and government officials taking over the pricing and monitoring of the fuel market.
An agreement was made on Wednesday by key stakeholders in oil production to reduce on production. This decision which has been taken for the first time in eight years will lead to an escalation of crude prices by 6% and boost gains for energy products.
Opec made efforts to minimize production to between 32.5m barrels a day and 33m barrels a day after attending a meeting in Algiers. This venture is expected to result in a drop of between 240,000 barrels a day and 740,000 barrels a day from the 33.24m barrels a day Opec pumped in August but according to analysts, this reduction will not be sufficient to cater for the growing need of oil products in the UAE.
However this news came as a surprise for oil vendors as they were not expecting an easy negotiation deal between Saudi Arabia and Iran as the two nations are do not have close relations. However they ae the leading influential markets of Opec.

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