UAE Announces Lower Fuel Prices for January 2026

The UAE announced fuel prices for January 2026 on Wednesday, with pump rates set to reduce across all fuel categories compared to December 2025. The new prices will take effect from January 1, offering motorists and businesses some relief at the start of the year.

According to the announcement, Super 98 petrol will be priced at Dhs2.53 per litre, down from Dhs2.70 in December 2025. Special 95 petrol will cost Dhs2.42 per litre, compared with Dhs2.58 previously, while E-Plus 91 petrol will be sold at Dhs2.34 per litre, down from Dhs2.51. Diesel prices will also fall, with the fuel set at Dhs2.55 per litre, compared with Dhs2.85 last month.

The reductions follow a similar pattern to previous months. In November 2025, fuel prices had dipped from October levels, with Super 98 petrol dropping from Dhs2.77 to Dhs2.63 per litre. Analysts say that these adjustments reflect both international oil market trends and the UAE’s fuel price deregulation policy, which allows for monthly revisions based on global price movements.

Under the country’s pricing framework, the Fuel Prices Monitoring Committee reviews international oil prices and operational costs of distribution companies before approving new rates. The policy aims to maintain transparency while ensuring fuel prices in the UAE remain aligned with global market trends.

Residents and businesses are expected to benefit from the reductions, particularly logistics and transport companies that consume large volumes of fuel. For ordinary motorists, even modest decreases in pump prices can translate into meaningful monthly savings. Several drivers interviewed in Dubai said the cuts were a welcome start to the year. “It’s encouraging to see fuel prices fall. It makes a noticeable difference, especially for families who drive daily,” said one commuter.

Energy analysts noted that global crude prices have experienced some moderation in recent months, contributing to the decline in domestic fuel costs. They also highlighted the UAE’s efficient pricing mechanism, which adjusts rates in response to both international and local conditions.

The announcement underscores the UAE’s continued commitment to maintaining a market-driven fuel pricing system, providing predictability for consumers and businesses. By reviewing prices monthly and reflecting international market conditions, authorities aim to ensure fairness while supporting economic stability in the energy sector.

With the new rates in effect from January 1, drivers across the UAE can expect lower fuel bills at the pumps, starting the new year with reduced costs for both petrol and diesel.