UAE Fuel Prices: Impact and Future Prospects

September Fuel Prices Revealed in UAE: Impact on Residents and Economy

On the last day of August, the United Arab Emirates announced the fuel prices for September 2025, effective from September 1st nationwide. The month-to-month changes in fuel prices are closely monitored as they directly impact transportation, logistics costs, and subsequently, inflation. While drivers in August experienced a slight price decrease, September sees a minimal 1 fils increase in gasoline prices, although diesel prices have significantly decreased. Although this increase cannot be considered dramatic, it is worth examining how these small changes affect everyday life in the UAE, especially in car-centric cities like Dubai and Abu Dhabi.

Detailed September Prices

According to the new prices, Super 98 type gasoline in September costs 2.70 dirhams per liter, which is 1 fils more than August's 2.69. Special 95 also increases by 1 fils, reaching 2.58 dirhams per liter. E-Plus 91, primarily used in lower-performance vehicles, rises to 2.51 dirhams from the previous month's 2.50. In contrast, there is a significant drop in diesel prices, decreasing from 2.78 dirhams to 2.66 dirhams per liter.

These changes may seem negligible, but for the regular fuel-buying residents, shipping companies, and taxi/freight service providers, they can make a noticeable difference over time, especially in diesel prices that heavily influence road freight costs.

Why Stability Matters

The UAE tracks global oil price changes monthly and adjusts local fuel prices accordingly. This mechanism allows the government to flexibly adapt to global economic trends while closely monitoring domestic price stability. The current price level—averaging 2.58 dirhams per liter—keeps the UAE among the 25 countries offering the world's lowest fuel prices.

This position plays a crucial role in combating inflation. If fuel prices were to rise suddenly, the cost of transporting goods and services would increase, indirectly affecting food prices. Predictable pricing provides peace of mind for the market and allows businesses to plan their costs long-term.

Impact on Residents and Business Sector

The slight gasoline price increase will not considerably burden average car users, especially in cities where public transportation is a viable alternative. However, the decrease in diesel prices presents a significant advantage for the commercial sector, especially logistics companies, freight carriers, and construction firms that often operate diesel-powered vehicles.

Freight companies and food delivery services could also benefit from the lower diesel price, as these businesses are sensitive to changes in fuel costs. A company operating hundreds of vehicles could achieve significant savings monthly due to the 12 fils/liter diesel price decrease.

Sustainability and Awareness

While fuel remains relatively cheap in the UAE, the government is encouraging more sustainable transportation modes through various initiatives. In Dubai and Abu Dhabi, metro, tram, and bus networks are being continually expanded, while support for electric vehicles is becoming increasingly emphasized.

Low fuel prices can be tempting, but in the future, there will likely be growing pressure on residents and businesses to choose alternative, greener solutions. This goal supports various e-mobility programs, charging station developments, and the digitalization of public transportation.

Long-Term Outlook

The uncertainties of the global economy, geopolitical tensions, and fluctuations in the global oil market suggest that such regular monthly revisions are essential for stable operations. The September pricing underscores the balanced nature of the UAE’s pricing policy: while minimally aligning with market trends, it strives to avoid sudden price spikes for societal and economic stability.

It is expected that future monthly announcements will influence not only consumer habits but also market behavior. More conscious fuel usage, the growth of public transportation, and the spread of electric vehicles will play key roles in enabling the UAE to develop a sustainable transportation strategy in the long term.

(Source: Fuel Price Committee announcement.)