UAE motorists will pay 10 per cent more at the pumps next month as the cost of petrol rises for the second straight month. But for some, it signals a positive economic change.
With the exception of diesel, which increased a marginal 2.5 per cent, petrol prices shot up about 10 per cent, according to figures from the energy ministry.
This means that Super will cost Dh1.78 a litre compared with Dh1.62 in April, Special will be Dh1.67 compared with Dh1.51, diesel Dh1.60 compared with Dh1.56, and E Plus is to rise to Dh1.60 from Dh1.44. Dubai resident Emmanuelle Artins, 35, said that she filled her Toyota Rav4 with Special at least once a week, averaging about Dh80.
However, the UAE fuel prices are still seven times cheaper than in her native France. “I’m happy to participate in making this economy work and be stable,” she said.
Similarly in Abu Dhabi, Wilson Craig, 47, from the UK, said although the price fluctuations have been noticeable, it was not a significant drag on his finances. For him, his Porsche Cayenne is a gas guzzler that costs him on average between Dh90 and Dh100 a week.
“I have noticed the price fluctuations, but it is not too much of an inconvenience to me so far and prices are still cheaper than the UK,” he said. “I do believe that UAE petrol prices should rise as the cost of oil goes up and agreed with the move last year.”
The UAE changed its pricing system last August, and until last month, prices had been on a steady decline. The rise in petrol prices can be linked to the price of oil, which has recently rallied.
Brent crude, the global benchmark, is now about $47 a barrel compared with last month’s close at near $40.
“If prices rise then it would hopefully introduce some shift to public transport where available,” Mr Craig said.
For Dubai resident Orla Phillips, the move was a welcome sign given that her family has personally been affected by job losses as a result of the slump in oil prices.
“My brother lost his job in Canada because of the drop in prices, so I’m happy it’s turning around,” said the 34-year old Irish national.
The global oil and gas industry had shed more than 250,000 jobs globally by the end of last year after prices dropped about 60 per cent from highs of $110 a barrel nearly two years ago.
“This shows that the market is improving and all the regular people working in the industry who have been adversely affected by the drop in oil prices can breathe a small sign of relief at the increase,” Ms Phillips said.
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The biog
Name: Abeer Al Bah
Born: 1972
Husband: Emirati lawyer Salem Bin Sahoo, since 1992
Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old
Education: BA in Elementary Education, worked for five years in a Dubai school
