UAE Fuel Costs Surge Again in June, Petrol Up Nearly 50% Since February

UAE fuel costs climb again with petrol up nearly 50% since February 2026 / Image: File

For thousands of motorists across Dubai, Abu Dhabi, Sharjah and the rest of the UAE, June has begun with a familiar routine, checking fuel prices before heading to the petrol station. This time, however, the numbers are significantly higher. The UAE Fuel Price Committee has announced another increase in petrol prices for June 2026, pushing fuel costs to their highest levels in almost four years and extending a sharp upward trend that has been building for months. Under the new rates effective from June 1, Super 98 petrol now costs Dh3.95 per litre, up from Dh3.66 in May. Special 95 has increased to Dh3.83 per litre from Dh3.55, while E-Plus 91 now stands at Dh3.76 per litre compared with Dh3.48 last month. Diesel, however, has fallen to Dh4.33 per litre from Dh4.69. The latest adjustment means petrol prices have now risen for four consecutive months, placing additional pressure on household budgets, daily commuters, transport operators and businesses that rely heavily on road travel.

May vs. June 2026

Fuel GradeMay 2026 Price (AED)June 2026 Price (AED)Change (Fils)M-o-M % ChangeSuper 983.663.95+297.92%Special 953.553.83+287.89%E-Plus 913.483.76+288.04%Diesel4.694.33-36-7.68%

The June increase has pushed petrol prices close to levels last seen during the global energy crisis triggered by the Russia-Ukraine war in 2022. The latest figures place UAE petrol prices at their highest point since August 2022, when rates crossed the Dh4-per-litre mark during the global oil shock caused by geopolitical tensions and supply disruptions. Even more striking is the pace of the increase since the start of the year. In February 2026, Super 98 petrol cost just Dh2.45 per litre. Four months later, the same fuel grade now costs Dh3.95, representing a rise of more than 60 per cent in a relatively short period.

What drives fuel costs higher?

The sharp rise in UAE fuel prices reflects ongoing volatility in international energy markets. Oil prices surged during recent months after conflict in the Middle East disrupted shipping activity through the strategically important Strait of Hormuz, one of the world's busiest energy transit routes. Roughly one-fifth of global oil supplies pass through the waterway, making any disruption a major concern for energy markets. Brent crude climbed above $110 per barrel during periods of heightened regional tensions before easing slightly as diplomatic efforts reduced some immediate fears of wider disruption. However, prices remained elevated throughout much of May, directly influencing June fuel rates in the UAE. Analysts quoted by Khaleej Times said supply concerns, shipping restrictions and geopolitical risks continue to keep pressure on global oil markets. Vijay Valecha, Chief Investment Officer at Century Financial, said physical oil markets remain tight due to continuing constraints around shipping activity and broader regional security concerns. The fuel adjustment also comes shortly after the UAE's historic decision to leave OPEC and OPEC+ in May 2026 after more than six decades of membership. While the immediate impact on local fuel prices remains limited, energy analysts are closely watching how future production policies could influence oil markets.

Why UAE fuel prices change every month?

The UAE has followed a market-linked fuel pricing system since 2015, when authorities ended government fuel subsidies and connected domestic petrol prices more closely to international oil market movements. Under this system, the UAE Fuel Price Committee reviews prices every month based on global crude oil trends, refining costs, distribution expenses and broader market conditions. This means UAE motorists often experience fuel price movements with a slight delay because monthly adjustments reflect earlier global market averages rather than immediate daily oil price fluctuations. While diesel users will benefit from a noticeable reduction this month, petrol drivers are facing another round of increases just as summer travel activity begins rising across the Emirates. For now, the key question facing motorists is whether June marks the peak of the fuel-price surge or merely another step in a period of continued volatility. Much will depend on global crude prices, shipping activity through the Strait of Hormuz and geopolitical developments across the wider Middle East in the weeks ahead.