Fuel prices are set to rise across the United Arab Emirates starting February 1, 2025, marking the first increase this year after two months of unchanged rates. The new prices, announced by the UAE Fuel Price Committee, reflect the fluctuations of global oil markets and have increased the cost for motorists, as the market continues to be influenced by various geopolitical factors.
The prices will be as follows: Super 98 petrol will now cost AED 2.74 per litre, up from AED 2.61 in January. Special 95 petrol will also see an increase to AED 2.63 per litre from AED 2.50. E-Plus 91 will jump to AED 2.55 per litre, rising from AED 2.43, and diesel prices will adjust to AED 2.82 per litre, up from AED 2.68.
This adjustment reflects nearly 5 percent increases across the board, with Super 98 petrol rising by approximately 4.9 percent and diesel seeing a notable 5.2 percent hike. The committee indicated this change is closely tied to movements observed in the global oil market, which has experienced volatility intertwined with geopolitical tensions and shifting supply dynamics.
Since deregulating petrol prices back in 2015, the UAE has aligned its fuel pricing with global trends, adjusting rates at the end of each month. Notably, January prices remained stable, making this increase significant for consumers and businesses alike as the country navigates the unpredictable energy market.
Currently, global oil prices are also under the spotlight, with Brent crude trading at $77.25 per barrel and West Texas Intermediate at $73.29. These slight uptrends have been attributed to broader economic conditions, including potential US tariffs on oil imports from Canada and Mexico. Such tariffs may initially affect gasoline prices within the US, but experts warn they could also have global repercussions, particularly concerning crude demand.
Goldman Sachs recently weighed in on this development, forecasting future Brent prices, which could peak at around $80 per barrel between April and May 2025. This outlook reflects concerns about potential declines caused by tariffs, highlighting the interconnected nature of the global oil economy.
Commenting on the situation, financial analysts noted, “The inclusion of Canada oil in potential tariffs could weigh heavily on crude prices globally and especially impact Canadian producers with limited export options.” This sentiment adds layers of complexity to the discussion about rising fuel prices, linking local consumer costs to international trade dynamics.
For UAE residents and drivers, the increase presents challenges with rising living costs as they adjust to the impacts of the new fuel rates. With fuel prices directly affecting the cost of goods and services, customers will likely feel the effects throughout various sectors of the economy.
Looking forward, as the oil market continues to face pressures from geopolitical strategies and market speculations, consumers are advised to stay informed about possible future price changes. Meanwhile, the UAE’s commitment to deregulated pricing offers both advantages and challenges, giving the market the flexibility to respond quickly to global shifts, though it leaves consumers at the mercy of those changes.
Overall, this increase marks not just another monthly adjustment but signals the delicate balance between domestic pricing and the international oil market's volatility, compelling consumers to adapt to both current rates and the unpredictable future of fuel costs.