Fuel Prices Set to Stay Stable in UAE

Fuel Prices in the UAE for August: Why Stability is Likely?

In the United Arab Emirates, fuel prices are expected to remain stable or show only slight changes in August. The average closing price of Brent crude oil in July was approximately $68.80 per barrel, which is slightly lower than the June average of $69.87. This moderate price movement contributes to keeping gasoline prices among the most favorable in the world.

Price Trends and Global Position

In July, the price per liter of Super 98 gasoline was set at 2.70 dirhams, while Special 95 was priced at 2.58 dirhams, and E-Plus 91 was at 2.51 dirhams. These prices are not only favorable for domestic consumers but also help the UAE remain among the top 25 countries offering the lowest fuel prices worldwide.

Inflation and Central Bank Forecast

Favorable fuel prices also positively impact the inflation environment. In the first quarter of 2025, inflation was only 1.4 percent, primarily due to declining energy prices. Consequently, the Central Bank adjusted its inflation forecast for 2025 from 2 percent to 1.9 percent. The estimate for 2026 was also reduced from 2.1 percent to 1.9 percent, indicating that stable fuel prices will likely curb price level increases in the long term.

Impact of Trade Agreements on Oil Prices

The dynamics of global oil prices are influenced not only by the supply-demand balance but also by international trade negotiations. For example, in July, an agreement between the USA and Japan—regarding the reduction of tariffs on car imports and increased American investments—had a stimulating effect on the crude oil market. Additionally, ongoing negotiations between the United States and the European Union are fostering optimism, which could further enhance demand expectations.

Nevertheless, caution remains prevalent in the markets. Uncertainties surrounding the timing and content of agreements may temper the possibility of sudden price surges. However, this equilibrium is good news for UAE residents and businesses, as stable fuel prices contribute to price stability in transportation costs and essential goods.

What to Expect in August?

Experts suggest that there will be no significant deviation from current fuel prices in August. The international oil market is relatively calm, and while geopolitical events could bring sudden changes, the most likely scenario at present is moderate stability.

For the public and the business sector, this is positive news, as fuel prices play a crucial role in cost and inflationary pressures. The UAE's commitment to transparent and monthly regulation of prices continues to ensure predictability and economic stability.

(The article is based on a statement from the Central Bank.)