Motorists across the UAE and the globe have been exposed to skyrocketing fuel prices among other commodities.
At the beginning of July, consumers expected an increase and were soon met with confirmation when Emarat announced an upsurge of 10% to 15% in petrol prices for the month of July 2022.
These swelling price points are affecting everything from diesel and groceries, to rent and flight tickets: causing the common man from holding back on spending in the face of soaring inflation. According to CNBC, a variety of factors are influencing today’s record-high inflation, such as the “post-pandemic consumer demand, ongoing supply chain shortages, geopolitical events and the war in Ukraine.”
As of July, the UAE has recorded a hike in petrol prices for the 5th time this year, and according to the latest Morningstar research consumers can expect that 2022 will be the worst for inflation (including costs of energy, autos, and other durables), with prices estimated to drop by 2023.
The month of July saw fuel prices soar by 11% in the UAE
- 95 Special went up .49 fils or 12.1%
- 98 Super was up .48 fils or 11.6%
- E-Plus jumped up .48 fils or 12.1%
- Diesel went up a whopping .62 fils or 15%
With Diesel already costing AED4.76 a litre, it’s inevitable that price points can touch AED5+ by the end of 2022.
The public weigh-in their predictions
Ngl i wont be surprised if in 2 months fuel will cost 5 aed/L 🙂🙂🙂
— tin (@talkdorty) July 1, 2022
However, experts are predicting that food and energy prices will level out by 2023-24
A quote in CNBC’s report claims that inflation could “fall as quickly and dramatically as it rose. We’ve seen it happen before.”
Investment research firm Morningstar added that inflation is expected to undershoot 2% in 2023 and 2024.
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The Minister of Energy added that, Prices can reach “unseen” levels if Russian oil and gas are completely taken off the market
The Minister of Energy Suhail Al Mazrouei disclosed stats on the shortage of gas, saying that “we’re lagging by almost 2.6 million barrels a day, and that’s a lot.”
Read more here.