UAE fuel prices increased in February 2025, ending a period of stability and prompting questions about future trends. The increase reflects global oil market volatility and geopolitical factors.
February 2025 Fuel Prices
Effective February 1, 2025, the new prices per liter are:
- Super 98: AED 2.74 (up from AED 2.61 in January)
- Special 95: AED 2.63 (up from AED 2.50 in January)
- E-Plus 91: AED 2.55 (up from AED 2.43 in January)
- Diesel: AED 2.82 (up from AED 2.68 in January)
These prices include a 5% value-added tax (VAT).
Factors Influencing Fuel Prices
Several factors influence the UAE’s fuel prices:
- Global Crude Oil Prices: The UAE’s fuel prices directly reflect global oil market fluctuations.
- Supply Chain Costs: Fuel distribution and transportation expenses play a role in the price at the pump.
- Market Trends: The UAE Fuel Price Committee analyzes demand and consumption patterns to make pricing decisions.
The UAE Fuel Price Committee meets monthly to assess and modify fuel prices. This committee considers global crude oil prices, supply chain costs, and market trends. The UAE announces price modifications monthly to ensure transparency and maintain public trust.
Will Prices Rise Further?
Analysts suggest that further price increases are possible due to global oil market volatility, geopolitical tensions, and economic changes. Tensions, such as renewed U.S. sanctions on Iran, could push Brent crude prices above $80 per barrel. A Wall Street Journal survey forecasts Brent crude to average $75.33 per barrel in the first quarter of 2025. Experts note that a “maximum pressure” campaign on Iran could remove 1.3 million barrels per day from the global market, potentially driving prices up.
Implications for Motorists
UAE motorists may need to prepare for fuel price fluctuations in the coming months. While geopolitical tensions may cause short-term increases, long-term stability could occur if OPEC+ increases production or economic concerns reduce demand. Experts advise UAE motorists to stay informed about local pricing adjustments and global oil market trends.
