Petrol and diesel prices across the UAE will increase starting July 1, 2025, following a period of global oil market uncertainty and geopolitical tensions. This comes after two months of relative stability, with June prices holding steady at May’s levels.
Price Breakdown: What Motorists Will Pay in July
The UAE’s Fuel Price Committee announced the revised retail rates for July late this month. The new prices, effective from Monday, July 1, are as follows:
These increases mark a noticeable shift after fuel prices remained unchanged in June, following a slight rise in May and two months of consecutive declines prior to that.
Global Tensions Driving Up Oil Prices
The July price hike was largely anticipated due to rising global crude prices earlier in June. Market analysts had projected an upward pressure on fuel prices after a series of geopolitical events triggered a surge in oil rates.
According to reports, the spike followed a sharp escalation in the Middle East after conflict broke out between Israel and Iran, prompting U.S. airstrikes on Iranian nuclear sites. These developments heightened fears of supply disruptions in the region, causing crude oil prices to rally.
How UAE Fuel Prices Are Set
The UAE deregulated fuel prices in August 2015, linking them to global oil market trends. Since then, petrol and diesel rates are revised monthly by the UAE’s Fuel Price Committee, based on fluctuations in global crude prices.
The revised prices are typically announced in the final days of each month and implemented from the 1st of the following month. This transparent pricing mechanism helps ensure that local retail rates reflect international energy market conditions, both up and down.
Price Breakdown: What Motorists Will Pay in July
The UAE’s Fuel Price Committee announced the revised retail rates for July late this month. The new prices, effective from Monday, July 1, are as follows:
- Super 98 petrol: Dh2.70 per litre
- Special 95 petrol: Dh2.58 per litre
- E-Plus 91 petrol: Dh2.51 per litre
- Diesel: Dh2.63 per litre
These increases mark a noticeable shift after fuel prices remained unchanged in June, following a slight rise in May and two months of consecutive declines prior to that.
Global Tensions Driving Up Oil Prices
The July price hike was largely anticipated due to rising global crude prices earlier in June. Market analysts had projected an upward pressure on fuel prices after a series of geopolitical events triggered a surge in oil rates.
According to reports, the spike followed a sharp escalation in the Middle East after conflict broke out between Israel and Iran, prompting U.S. airstrikes on Iranian nuclear sites. These developments heightened fears of supply disruptions in the region, causing crude oil prices to rally.
How UAE Fuel Prices Are Set
The UAE deregulated fuel prices in August 2015, linking them to global oil market trends. Since then, petrol and diesel rates are revised monthly by the UAE’s Fuel Price Committee, based on fluctuations in global crude prices.
The revised prices are typically announced in the final days of each month and implemented from the 1st of the following month. This transparent pricing mechanism helps ensure that local retail rates reflect international energy market conditions, both up and down.
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