UAE Petrol Prices Expected to Decrease in August 2025
After several consecutive months of steady increases, petrol prices in the United Arab Emirates are forecasted to decline slightly in August 2025. This development is expected to provide some relief to residents, tourists, and businesses operating in the country. The new prices will be implemented starting August 1, following the official announcement by the UAE Fuel Price Committee.
This article provides an overview of the most recent pricing trends, the expected adjustments for August, and the potential implications for vehicle owners and the car rental industry.
Review of July 2025 Fuel Prices
In July 2025, petrol and diesel prices in the UAE rose to their highest levels this year. The following were the official rates for July:
Super 98: AED 2.70 per litre
Special 95: AED 2.58 per litre
E-Plus 91: AED 2.51 per litre
Diesel: AED 2.63 per litre
These figures represented an increase of approximately 10 to 14 fils per litre compared to June, continuing the upward trend observed since the beginning of the summer.
Factors Behind the Mid-Year Increase
Several global and regional factors contributed to the July price hike:
- A recovery in international crude oil markets, driven by production adjustments by major oil-exporting countries.
- Seasonal demand growth during school holidays and the Eid travel period.
- Market instability caused by geopolitical developments in key oil-producing regions.
- Refinery output constraints and increased distribution costs in certain global markets.
These conditions led to higher crude oil benchmarks, which directly influenced fuel prices in the UAE.
August 2025 Outlook: A Modest Decline Expected
Early industry forecasts suggest a moderate decline in fuel prices for August. Although official figures will be released by the end of July, analysts anticipate a decrease of approximately 5 to 10 fils per litre for both petrol and diesel.
Projected price ranges include:
Super 98: AED 2.62 to 2.65 per litre
Special 95: AED 2.50 to 2.53 per litre
E-Plus 91: AED 2.43 to 2.46 per litre
Diesel: AED 2.55 to 2.58 per litre
The expected drop is attributed to the following developments:
A 13 percent decline in global oil prices in late June.
Slower-than-expected demand growth in markets such as China and the European Union.
A stronger US dollar, which placed downward pressure on oil prices.
More stable global supply after adjustments by key oil producers.
Implementation Schedule
The UAE Fuel Price Committee is scheduled to announce the official fuel prices for August on or before July 31, 2025. The new rates will take effect from August 1 and will remain in place throughout the month.
Fuel prices in the UAE are reviewed monthly and are based on global crude oil trends, refining costs, and local distribution expenses.
Impact on Drivers, Tourists, and Rental Clients
A decline in fuel prices, even if modest, may have positive effects across various sectors:
For Private Vehicle Owners
Lower petrol costs reduce the overall expense of daily commutes, road trips, and business-related driving.
For Tourists and Short-Term Visitors
Travel by rental car may become more affordable, especially for those planning intercity travel across the Emirates during the summer period.
For Commercial Fleets
Logistics and transportation companies may benefit from reduced operational expenses, improving margins in the second half of the year.
Fuel Efficiency and Cost Savings
While lower fuel prices are beneficial, choosing a fuel-efficient vehicle remains one of the most effective ways to manage travel expenses. Renting a modern, well-maintained car can significantly reduce fuel consumption and provide a more economical solution for both short and long-term travel needs.
Car rental companies in the UAE typically offer a wide range of compact cars, sedans, and hybrid vehicles, which are ideal for drivers seeking to minimize fuel use.
Fuel Price Comparison: June–August 2025
Below is a summary of recent fuel price trends:
| Month | Super 98 | Special 95 | E-Plus 91 | Diesel |
|---|---|---|---|---|
| June 2025 | AED 2.58 | AED 2.47 | AED 2.39 | AED 2.45 |
| July 2025 | AED 2.70 | AED 2.58 | AED 2.51 | AED 2.63 |
| August 2025 (Projected) | AED 2.62 – 2.65 | AED 2.50 – 2.53 | AED 2.43 – 2.46 | AED 2.55 – 2.58 |
The projected decline in UAE fuel prices for August 2025 is a welcome development for residents and visitors alike. Although the reduction may be modest, it reflects a stabilizing energy market and offers some financial relief during the peak travel season.
For those planning to rent a vehicle in the coming weeks, this adjustment presents an opportunity to explore the UAE more affordably. Choosing a fuel-efficient car, driving responsibly, and planning routes in advance will further maximize the benefits of lower fuel costs.
The official petrol and diesel rates for August will be published by the end of July. Until then, consumers and businesses can prepare for a potentially more economical month ahead.
