UAE motorists are likely to see fuel prices fall for a second consecutive month in August, although analysts expect any reduction to be modest despite lower crude oil prices.
Analysts said easing global oil prices support another cut in petrol prices, but warned that geopolitical tensions in the Middle East and tight fuel inventories could limit the size of the reduction.
Some forecasts suggest Special 95 petrol could fall to around Dh3.13 per litre and Super 98 to about Dh3.24 per litre if current crude price trends continue.
Analysts cautioned that oil markets remain highly sensitive to developments involving Iran and the Strait of Hormuz, with any renewed escalation potentially pushing crude prices higher and affecting future fuel prices.
The UAE is expected to announce its August fuel prices later this week.