UAE residents may soon get some relief at the fuel pumps, as global oil prices dip after a sharp rise in July. The country’s Fuel Price Committee is expected to announce the new petrol and diesel rates for August 2025 by the end of the month.
Dubai : Motorists across the UAE are keeping a close eye on upcoming fuel price changes, as the country prepares to announce new petrol and diesel rates for August 2025. After a significant rise in prices in July, early market indicators suggest a possible relief for consumers, with global crude oil trends pointing toward a minor decline in fuel costs.
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The fuel price hike in July was one of the steepest in recent months. The rates per litre were as follows:
The increase reflected global oil prices, which rose during the early weeks of June due to a combination of geopolitical tensions and tight supply from major producers.
However, by the end of June, international oil markets began to soften. Brent crude and US crude benchmarks dropped nearly 13 percent in a single week — the sharpest decline since early 2023. By mid-July, oil was trading around 10 percent lower than the previous quarter, with Brent crude hovering near the 69-dollar-per-barrel mark.
This reversal in trend has led analysts to predict a more favorable outlook for consumers in the UAE. If global crude continues to trade lower, August’s petrol prices could either remain stable or drop slightly — potentially by 5 to 10 fils per litre.
The UAE deregulated fuel prices in 2015, moving to a system where prices are adjusted monthly in line with international crude markets. The prices are reviewed and set by the UAE Fuel Price Committee at the end of each month and take effect on the first day of the following month.
Several factors influence the final retail price:
Because of this formula, fuel prices in the UAE closely follow international market behavior. When oil prices fall, as they have in recent weeks, the impact is typically passed on to local consumers.
Based on current oil market performance, experts believe that fuel prices could either remain unchanged or see a slight decline in August. Although July’s hike was significant, the recent drop in oil prices should reflect in the upcoming review.
Analysts are expecting the following scenarios:
The final prices for August 2025 will be officially announced by the Fuel Price Committee by July 31.
Fuel price changes in the UAE affect more than just private vehicle owners. Transport companies, ride-hailing platforms, food delivery services, and logistics operators all experience cost fluctuations tied directly to monthly fuel price adjustments.
Even a small change can have a significant impact on:
Many businesses have begun factoring monthly price forecasts into their operational planning to remain cost-effective and competitive.
Diesel, the backbone of heavy transport and logistics, saw a sharp rise in July. A correction in August could provide relief to shipping firms, construction businesses, and supply chain operators.
With global oil supply stabilizing and demand from major markets like China and Europe slowing, diesel prices may follow the same trend as petrol and ease slightly next month.
| Fuel Type | June 2025 | July 2025 | August Forecast |
|---|---|---|---|
| Super 98 | AED 2.58 | AED 2.70 | AED 2.60–2.65 |
| Special 95 | AED 2.47 | AED 2.58 | AED 2.48–2.53 |
| E-Plus 91 | AED 2.39 | AED 2.51 | AED 2.41–2.46 |
| Diesel | AED 2.45 | AED 2.63 | AED 2.53–2.58 |
These projections are based on current market behavior and may change depending on late July oil price fluctuations.
Despite positive signals for a price drop, experts caution that the global oil market remains volatile. Conflicts, unexpected supply cuts, or weather-related disruptions could push prices up again. For now, however, most indicators point toward some stability and possibly a modest reduction in UAE fuel costs for August.
With July's fuel price hikes still fresh in the minds of UAE drivers, the potential for relief in August is a welcome development. As always, the official announcement at the end of the month will determine how much motorists will pay at the pump.
The next pricing update is expected on or before July 31. Until then, all eyes remain on international oil markets and the decisions made by the UAE Fuel Price Committee.
