Abu Dhabi: Fuel prices in the UAE are set to go up for the month of October, the Ministry of Energy announced on Thursday.
Diesel will be costlier by more than 2 per cent and petrol by more than 3 per cent.
The new per litre prices are Dh1.81 for Super 98, up from Dh1.75 in September; Dh1.70 for Special 95, up from Dh1.64; and Dh1.63 for E Plus-91, up from Dh1.57.
The price of diesel has been increased from Dh1.72 per litre in September to Dh1.76 per litre for October.
Fuel prices are linked to international average crude prices which have gone up by about 5 per cent on Wednesday night after Opec (Organisaiton of Petroleum Exporting Countries) reached a deal to limit production.
Brent, the global benchmark was trading slightly above $48 per barrel at 3.15pm UAE time and West Texas Intermediate, the US benchmark, was at $46.79 per barrel.
The fuel prices are calculated based on the average global prices for diesel and petrol with the addition of operating costs and profit margins of the distributing companies in the UAE.
Oil prices jumped by more than five per cent on Wednesday after Opec countries reached a deal to limit production to a range of 32.5 to 33 million barrels per day.
The current production of the group is estimated to be about 33.24 million bpd.
Despite the deal, the outlook for the industry remains weak as crude producers continue to pump out more than the market can consume.
Ole Hansen, head of commodity strategy at Saxo Bank, predicted that the oil price would range from $45 per barrel to $50 in the coming months.
“This has not altered on this (Opec) announcement with so many key details still to be worked out,” he told Gulf News, referring to the lack of clarity on the production cuts to be implemented to rebalance oil markets.
