The prices have been increased in line with the rise in global oil prices.

The UAE fuel price committee on Sunday announced the revised fuel prices for March 2021, which have been increased in line with the rise in global oil prices.

In March, Super 98 petrol will cost Dh2.12 per litre, versus Dh1.91 in February; while Special 95 will cost Dh2.01 per litre, versus Dh1.80 in February. Diesel will cost Dh2.15 a litre in March, versus Dh2.01 in February.

Experts have noted that oil prices are currently trading above pre-pandemic levels, but demand is still below its pre-pandemic levels.

In its most recent prediction, Bank of America said that oil prices are set to rise by the fastest rate since the 1970s over the next three years. The average price of Brent over the next five years, however, will be between $50 and $70 per barrel, according to the bank. The bank also said that Opec+ might decide to reverse its production cuts now that Brent is trending above $60, but added that a slow return of US shale to international markets might lead to an extension of the production cut agreement to make sure prices stay higher.

Traders are trimming long positions on concerns that the upcoming Opec+ meeting will result in more supply returning to the market.

“The originally planned [easing of cuts] would mean an increase in supply of 2.25 million bpd versus March levels,” HSBC said in a recent note.

US crude oil prices also face pressure from the loss of refinery demand after several facilities were hit by the winter storm last week. Refining capacity of about 4 million barrels per day is still shut and it could take until March 5 for all shut capacity to resume, though there is risk of delays, analysts at J.P. Morgan observed.