Petrol and diesel prices in the UAE will rise sharply in July, authorities announced on Monday, after an extremely volatile month for the oil market globally on the back of the Israel-Iran war.
This is the second time prices have been increased this year.
Petrol prices were kept steady in June after a marginal increase in May. Prices were reduced in March and April, following a rise of about 5 per cent in February. Fuel rates were unchanged in January.
How much will fuel cost in July 2025?
The breakdown of fuel prices per litre for next month is as follows:
Super 98: Dh2.70, up 4.65 per cent from Dh2.58 in June
Special 95: Dh2.58, 4.45 per cent higher than Dh2.47 in June
Diesel: Dh2.63, an increase of more than 7 per cent from Dh2.45 in June
E-Plus 91: Dh2.51, a 5 per cent rise from Dh2.39 in June
The UAE deregulated fuel prices in 2015 and movements are now tied to those in the global oil market.
The oil market faced extreme volatility in June, primarily driven by the 12-day Israel-Iran conflict. Brent prices touched a five-month high of more than $81 a barrel, before erasing all gains as the two countries agreed to a fragile ceasefire last week. Brent prices dropped by 12 per cent last week.
Brent, the benchmark for two thirds of the world's crude, was down 0.24 per cent to $67.61 a barrel at 10.19am UAE time on Monday. West Texas Intermediate, the gauge that tracks US crude, was trading 0.53 per cent lower at $65.17 a barrel.
Looking ahead, the focus is on the Opec+ meeting on July 6, where discussions on a potential output increase are expected, Japanese bank MUFG said in a note on Thursday. The oil producers group raised its monthly oil output by 411,000 barrels per day for July, following similar increases in May and June.
"Near-term price support may persist due to tight inventories and seasonal demand, though easing geopolitical risks and demand uncertainties could temper further gains," MUFG said.
Meanwhile, the market will focus on the outcome from US trade talks with partners as the three-month pause deadline of July 9 looms closer.
Fitch Ratings has raised its 2025 annual average oil price assumption by $5 a barrel to $70 a barrel, it said on Friday.
