Post by : Badri Ariffin

June has brought another increase in petrol costs for UAE drivers, marking the fourth month in a row of rising fuel prices. The latest adjustments indicate a near 8% hike in petrol costs, while diesel prices have seen a notable decrease.

The new rates reveal that Super 98, Special 95, and E-Plus 91 petrol prices jumped between 7.9% and 8.0%. In comparison, diesel prices dropped by 7.7%.

Even as fuel costs continue their upward trend, the increase in June is milder than the significant surges recorded in April and May, suggesting a potential easing of fuel price pressures.

Current Fuel Costs Significantly Higher Than Earlier This Year

Despite the recent cooling in global oil markets, UAE motorists are still facing much higher fuel expenses compared to the beginning of 2026.

For instance, the price of Super 98 petrol has skyrocketed from Dh2.45 per litre in February to Dh3.95 per litre in June, a rise of approximately 61%.

This has had a substantial financial impact on vehicle owners:

• A 60-litre sedan that previously cost Dh147 to refuel in February now sets drivers back Dh237, an increase of Dh90 per tank.

• An 80-litre SUV, which needed Dh196 in February, now costs Dh316 to fill, a hefty rise of Dh120.

Comparing to May, filling a 60-litre tank with Super 98 now costs roughly Dh17.40 more, while an 80-litre SUV owner pays about Dh23 extra.

Motorists refueling multiple times monthly continue to encounter much higher fuel bills compared to earlier this year.

Global Oil Prices on a Downward Trend

The spike in UAE fuel prices occurs despite a fall in international crude oil prices.

Earlier this year, fears of disruptions in the Strait of Hormuz had pushed Brent crude prices above $110–$120 per barrel. However, prices have since dropped to around $91–$95 per barrel.

This decrease is buoyed by positive developments in US-Iran negotiations and hopes for a more lasting regional ceasefire. As worries about supply disruptions diminish, panic-driven oil market buying has significantly declined.

While oil prices are still higher than early this year, the market's stability has visibly improved.

UAE Fuel Prices Remain Competitive on a Global Scale

Following the latest increase, fuel prices in the UAE are still notably below those in many significant international markets.

The current global average petrol price is around $1.54 (Dh5.7) per litre, according to international fuel price tracking.

Countries with elevated fuel prices include:

• In the United States, petrol costs exceed $5 per gallon in numerous areas.

• European nations are facing higher fuel prices due to various taxes and VAT charges.

• South Africa has raised petrol prices by approximately R1.43 per litre in June.

• Bangladesh has increased petrol and octane prices by BDT5 per litre to align domestic prices with global trends.

• The Philippines has announced fuel price cuts for both petrol and diesel for this period.

The UAE adopts a market-based fuel pricing system, meaning local prices fluctuate according to global oil market dynamics rather than fixed government rules.

Reasons Behind Rising Fuel Prices

Fuel prices in the UAE are determined using average global oil prices from the previous month.

Even though crude oil prices began to decline towards the end of May, prices remained high for most of the month. This resulted in higher average prices influencing June fuel rates.

The Strait of Hormuz plays a critical role, as around 20% of global oil and fuel supplies pass through this strategic route, rendering energy markets highly sensitive to regional stability changes.

Future of Fuel Prices

Market analysts suggest June could serve as a transitional phase for fuel pricing.

If Brent crude maintains levels close to $90 per barrel, avoiding another spike above $100, then UAE prices might face downward trends in the upcoming months.

April and May reflected the peak effects of regional disruptions on global oil markets. While current fuel prices are still high compared to early 2026, the slight increase in June hints that the rapid price inflation period may be slowing down as crude oil prices continue to retreat from their recent highs.

#Global News #UAE News #Global Updates #World News