The UAE has announced the fuel prices for July 2025, with noticeable increases across all petrol and diesel categories. The hike comes in response to rising global oil prices driven by heightened geopolitical tensions in the Middle East. The new rates, effective from July 1, reflect the country's monthly price revision policy, which aligns local fuel costs with international market trends.
The UAE has released its updated fuel prices for the month of July 2025, reflecting a noticeable increase in rates compared to June. The hike comes against the backdrop of rising global oil prices, largely driven by escalating geopolitical tensions in the Middle East.
In June, fuel prices in the UAE remained unchanged from May, which had already seen a slight increase after a period of consecutive declines over two months. However, July’s pricing reveals a new upward trajectory, influenced by recent global developments, particularly the conflict between Israel and Iran. The situation intensified after the United States launched airstrikes on Iranian nuclear facilities, prompting oil markets to respond with sharp price increases due to concerns over supply disruptions.
The UAE’s Fuel Price Committee, which announces revised prices at the end of each month in line with international oil movements, confirmed the following rates for July 2025:
Super 98 petrol will now cost Dh2.70 per litre, up from Dh2.58 in June.
Special 95 petrol has been priced at Dh2.58 per litre, compared to Dh2.47 the previous month.
E-Plus 91 petrol, often used in older vehicles, will now be available at Dh2.51 per litre, an increase from Dh2.39 in June.
Diesel, which fuels a significant portion of commercial transportation and logistics, will be charged at Dh2.63 per litre, rising from Dh2.45 in June.
These revised rates will come into effect starting July 1, 2025.
Global Tensions Drive Up Oil Prices
The upward revision of fuel prices is closely tied to developments in the international oil market. Global crude benchmarks, including Brent and West Texas Intermediate (WTI), surged earlier this month in response to the military escalation in the Middle East. With the Strait of Hormuz—a vital chokepoint for global oil transport—facing increased security risks, fears of supply disruption led to a spike in oil futures.
The US-led airstrikes on Iranian nuclear sites further added to market uncertainty, prompting traders to anticipate tighter supply conditions. As a result, the cost of crude oil rose, influencing downstream fuel pricing across several oil-importing countries, including the UAE.
UAE Fuel Pricing Policy
Since the UAE deregulated its fuel pricing policy in August 2015, petrol and diesel rates have been aligned with global oil prices. The deregulation was aimed at supporting the national economy, improving fuel efficiency, and reducing carbon emissions by encouraging public transport use and adoption of cleaner vehicles.
Each month, the UAE’s Fuel Price Committee evaluates global oil price trends and determines the applicable rates for the following month. This transparency ensures that consumers and businesses stay aligned with international market dynamics while the government avoids subsidizing fuel prices.
Economic Implications
For motorists and businesses alike, the July price hike means a higher cost of travel and logistics. Transport companies, particularly those relying heavily on diesel, may face increased operational expenses. Consumers could also see marginal increases in the cost of goods and services due to transportation-related inflation.
Nonetheless, industry experts note that the UAE continues to maintain some of the most competitive fuel prices in the region, thanks to efficient supply chains and a robust domestic energy sector.
As global oil markets remain volatile, the UAE’s fuel pricing mechanism will continue to reflect the ebb and flow of international crude movements. Motorists and commercial users are advised to monitor monthly announcements to manage fuel expenses accordingly.
