June Sees Another Spike in UAE Fuel Costs, Petrol Up by Nearly 8%

Fuel prices in the UAE have climbed once again in June, marking the fourth month of increases. Petrol rates surged by nearly 8%, while diesel prices saw a notable decrease.

The latest figures indicate that Super 98, Special 95, and E-Plus 91 petrol costs increased by 7.9% to 8.0%, contrasting with a 7.7% drop in diesel prices.

Although the rising trend persists, the June increase is milder compared to the sharp hikes seen in previous months, hinting at a potential easing of fuel price pressures.

Fuel Prices Are Still Significantly Higher This Year

The UAE's motorists continue to face high fuel expenditures, remaining above early 2026 levels, despite global market adjustments.

Super 98 petrol has escalated from Dh2.45 per litre earlier this year to Dh3.95 per litre, a staggering rise of approximately 61%.

For drivers, the financial impact is considerable:

• A 60-litre sedan that previously cost Dh147 to tank in February will now take Dh237, increasing by Dh90.

• An 80-litre SUV that filled up for Dh196 in February now costs Dh316, marking a Dh120 surge.

In comparison to May, refueling a 60-litre tank with Super 98 now costs around Dh17.40 more, while owners of 80-litre SUVs pay an additional Dh23.

Those who refuel their vehicles multiple times each month are noticing significantly higher fuel bills than at the beginning of the year.

The Global Oil Market Shows Signs of Cooling

The increase in UAE fuel rates comes even as global crude oil prices have dipped.

Earlier this year, Brent crude prices surged over $110–$120 per barrel, driven by concerns over the Strait of Hormuz. Currently, prices fluctuate between $91 and $95 per barrel.

A more stable market is emerging thanks to improved hopes around US-Iran negotiations and the potential for a lasting regional ceasefire. The panic-driven purchasing in oil markets has notably declined.

While oil prices are still higher than early this year, market conditions appear to stabilize.

UAE Fuel Prices in a Global Context

Despite the latest increases, fuel prices in the UAE remain competitive compared to many countries worldwide.

The global average price for petrol is currently around $1.54 (Dh5.7) per litre, as per international tracking sources.

Many areas continue to grapple with elevated fuel costs:

• In the US, petrol remains above $5 per gallon in several states.

• European nations are dealing with higher fuel expenses, burdened by taxes and VAT.

• South Africa raised petrol prices by approximately R1.43 per litre in June.

• Bangladesh adjusted petrol and octane prices higher by BDT5 per litre, aligning them with global trends.

• Conversely, the Philippines has reduced fuel prices for both petrol and diesel during this timeframe.

The UAE utilizes a market-based pricing system for fuel, adjusting local rates based on global oil fluctuations rather than fixed state prices.

The Reasons Behind Rising Fuel Costs

The calculation of fuel prices in the UAE reflects average global oil prices from the preceding month.

Even though crude oil prices dipped towards the end of May, they were still relatively high for most of the month, which influenced June's fuel price adjustment.

The Strait of Hormuz remains a critical factor, as about 20% of the world’s oil supplies transit through this vital route. This connection creates a heightened sensitivity in energy markets to regional stability changes.

The Outlook for Future Fuel Prices

Experts suggest that June could signify a transitional phase for fuel prices.

If Brent crude maintains levels near $90 per barrel without exceeding $100, there might be downward pressure on UAE fuel prices in the upcoming months.

With April and May reflecting the peak disruptions in regional oil markets, June's lower increase indicates a potential slowdown in rapid price hikes as crude oil trends down from its recent highs.