UAE fuel prices over Dh4: Why residents pay up to Dh125 more per tank

· United Arab Emirates

UAE fuel prices over Dh4: Why residents pay up to Dh125 more per tank

Dubai: UAE residents filling a typical 60-litre fuel tank will pay up to Dh124.80 more than they did in February, after October fuel prices rose sharply as elevated international energy costs fed through to the country's market-linked pricing system.

From October 1, Super 98 costs Dh4.40 per litre, Special 95 Dh4.28 and E-Plus 91 Dh4.21, while diesel rises to Dh4.80. Compared with September, Super 98 has increased 15.8%, Special 95 16% and E-Plus 16.6%. Diesel is up 11.6%.The UAE Fuel Price Committee said the rates were approved under the country's monthly pricing mechanism, which reflects movements in global energy prices while taking local market requirements into account.

The increase follows an exceptional period for international energy markets. Brent crude spent much of September at elevated levels as disruption to regional energy flows kept pressure on global oil markets.

For residents, the scale of the change becomes clearer when October prices are compared with February, before the latest Middle East conflict began..Get updated faster and for FREE: Download the Gulf News app now - simply click here..What does it mean for your fuel bill?In February, Super 98 cost Dh2.59 per litre, Special 95 Dh2.48 and E-Plus Dh2.40, while diesel was Dh2.72. That means Super 98 has risen by Dh1.81 per litre, or nearly 70%, while Special 95 is up Dh1.80, or about 73%. E-Plus has increased Dh1.81, or roughly 75%, while diesel has risen Dh2.08, or about 76%.For someone buying 60 litres:Super 98: Dh155.40 in February to Dh264 in October — Dh108.60 moreSpecial 95: Dh148.80 to Dh256.80 — Dh108 moreE-Plus 91: Dh144 to Dh252.60 — Dh108.60 moreDiesel: Dh163.20 to Dh288 — Dh124.80 moreFor an 80-litre vehicle, the difference reaches about Dh144 for petrol and Dh166.40 for diesel. A motorist consuming 240 litres of Special 95 a month would spend Dh1,027.20 in October, compared with Dh595.20 at February's rate — a difference of Dh432, assuming exactly the same consumption.

Actual household costs will depend on kilometres driven, vehicle efficiency and litres purchased..UAE fuel rates over past 12 months.

UAE versus the rest of worldDespite October's sharp increase, the UAE's petrol price remains below the latest available global average. October's Dh4.28 Special 95 works out to approximately $1.17 per litre, using the dirham's fixed exchange rate against the US dollar.

The latest comparable international datasets put the average price of 95-octane petrol worldwide at $1.59 per litre. On that basis, the UAE's new October Special 95 price is approximately 26% lower than that global benchmark.

The comparison is indicative rather than perfectly like-for-like because the global dataset predates the UAE's October adjustment and prices elsewhere continue to change.

Still, individual markets illustrate the difference. On September 21, comparable petrol cost $1.27 per litre in the US and $2.44 in Singapore. The latest UK figure, dated September 14, was $2.27 per litre.

The international data provider says variations between countries reflect factors including taxes and subsidies, meaning retail pump prices can differ substantially even though countries are exposed to the same underlying international petroleum market.

The global comparison also shows that the UAE is not alone in facing higher fuel costs. The consumption-weighted benchmark shows average gasoline prices rising from $1.36 per litre in late June to $1.49 by September 21, while diesel increased from $1.40 to $1.65 over the same period..UAE petrol prices are lower than rest of the world despite June increase.

Why higher oil prices matterFuel costs matter beyond what motorists spend at petrol stations. A 2026 working paper published by the Central Bank of the UAE (CBUAE) examined the relationship between oil and domestic inflation and found a direct link, particularly through transport.

The paper said “oil prices act as a direct driver of inflation, primarily through the transportation component.” It also found that this relationship had become more pronounced since fuel-price deregulation in August 2015.

The distinction is important. A 70% increase in petrol does not translate into anything close to a 70% increase in overall consumer inflation. Transport represents only part of household expenditure, and movements in other components can offset or amplify changes in fuel costs.

The research is a CBUAE staff working paper rather than an official inflation forecast, and the CBUAE states that working-paper views are those of their authors rather than necessarily representing its official position..UAE fuel prices for October: Oil above $100 raises chances of another hike. Jet fuel feels oil-price hit tooThe same international oil shock affects aviation because jet fuel is one of airlines' biggest operating expenses. Higher crude prices generally raise the cost of producing jet fuel, although the relationship is not one-for-one because refining margins and supply conditions also affect the final price.

IATA has estimated that airlines globally will spend $350 billion on fuel in 2026, nearly 40% more than the $252 billion spent in 2025, with fuel accounting for 31.4% of airline operating expenses.

That does not mean airfares will rise by the same amount. Airlines can hedge fuel purchases, adjust capacity and absorb some cost increases.

Emirates Deputy President and Chief Commercial Officer Adnan Kazim told Reuters earlier this month that the airline's fuel hedging was helping contain the impact on fares. “Today we are holding back the prices as much as we can under the current high cost of operation,” Kazim said..Still below 2022 petrol recordOctober's prices also need historical context. UAE petrol reached record levels in July 2022, when Super 98 cost Dh4.63, Special 95 Dh4.52 and E-Plus Dh4.44.

October's Super 98 therefore remains 23 fils, or about 5%, below that level. Special 95 is 24 fils, or 5.3%, lower, while E-Plus remains 23 fils, or about 5.2%, below its July 2022 rate.

Diesel is different. October's Dh4.80 exceeds the Dh4.76 recorded in July 2022. So while October brings the highest petrol prices of 2026, all three petrol grades remain below their July 2022 records. Contemporary reporting confirms July 2022 was the previous record period, with Super 98 at Dh4.63 and Special 95 at Dh4.52..When will UAE fuel prices return to pre-war levels? What motorists can expect. Why hikes are happening nowOctober's adjustment follows a substantial rise in international energy prices during September.

The global data illustrate that movement clearly. Brent was around $94.07 a barrel on August 31, climbed to $98.57 by September 7 and reached $108.06 on September 14 before easing to $98.10 on September 21.

That volatility reflects continuing uncertainty over regional supplies and shipping routes.

For UAE residents, October's increase will therefore be noticeable, particularly for households with long commutes, multiple vehicles or high monthly mileage.

But the broader numbers provide useful context: UAE petrol has risen roughly 70%-75% from February and reached its highest level this year, yet remains around 5% below its July 2022 record and, on the latest available international comparison, below the global average price for 95-octane petrol.

What happens after October will depend largely on international energy markets. Sustained improvements in regional oil flows and lower crude and refined-product prices would feed through to subsequent monthly UAE fuel-price reviews..Make Gulf News your preferred news source on Google and stay ahead of the curve

Source: Gulf News - Living in UAE