UAE petrol and diesel prices are reset every month by the UAE Fuel Price Committee, with the new prices taking effect on the first day of the month. The committee says the monthly mechanism tracks movements in global energy prices. For this month’s pump prices, see our live UAE fuel prices page. This guide explains what moves the numbers.
- Prices are announced monthly, usually at the end of the previous month.
- They follow global crude and refined product markets, not local driving demand.
- Petrol and diesel can move by different amounts, or in different directions, in the same month.
How the monthly price is set
The committee looks at global crude oil and refined fuel benchmarks, then allows for local distribution and station operating costs. Policy settings decide how much of a global move shows up at the pump. In its own words, UAE prices are updated monthly and generally reflect changes in global oil and refined product markets.
What moves prices
| Factor | In plain terms |
|---|---|
| Brent crude | The global oil benchmark. A higher average usually pushes pump prices up |
| Refining margins | The gap between crude and finished petrol or diesel. It can widen or narrow separately for each fuel |
| OPEC+ decisions | Output targets change expectations of supply, which moves prices before any oil is sold |
| Shipping and security risk | Tension around the Red Sea or the Strait of Hormuz raises freight and insurance costs and adds a risk premium |
| Refinery outages | Shutdowns can tighten petrol or diesel supply even when crude is plentiful |
| Seasonal demand | Summer driving, freight activity and travel cycles shift demand for each product |
| US dollar | Oil is priced in dollars and the dirham is pegged to the dollar, so residents see little currency effect, but global dollar strength still shapes the market |
Why petrol and diesel can move differently
Each fuel has its own supply and demand. If refining margins for diesel jump because of tight supply or strong freight demand, diesel can rise faster than petrol even when crude is steady. The reverse also happens. For businesses, diesel matters most, because it feeds into transport and delivery costs.
How to plan around it
- Budget fuel as a variable cost that can change on the first of each month.
- Watch Brent and regional shipping news in the last two weeks of the month, when the committee’s decision is closest.
- Businesses that deliver goods can review delivery pricing at each reset, since diesel changes flow into transport costs.
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