Petrol prices in the UAE will rise marginally in September, while diesel prices will drop, authorities said on Sunday, following volatile conditions arising from supply uncertainty from Russia and US President Donald Trump's tariffs on key trade partners.
Petrol prices dropped marginally in August while diesel prices rose.
So far this year, petrol prices have risen in three different months, held steady in two and dropped during three.
How much will fuel cost in September 2025?
The breakdown of fuel prices per litre for next month is as follows:
Super 98: Dh2.70, up by 0.3 per cent compared to Dh2.69 in August
Special 95: Dh2.58, 0.3 per cent higher compared to Dh2.57 in August
Diesel: Dh2.66, 4.3 per cent lower compared to Dh2.78 in August
E-Plus 91: Dh2.51, rise by 0.3 per cent compared to Dh2.50 in August
The UAE deregulated fuel prices in 2015 and movements are now tied to those in the global oil market, which has experienced significant volatility since the beginning of the year.
Oil prices slumped on Friday but still posted a second weekly gain as investors weighed stagnating demand against the Russian crude supply uncertainty amid intensifying war with Ukraine.
Brent, the benchmark for two thirds of the world's oil, settled 0.74 per cent lower at 67.48 a barrel. West Texas Intermediate, the gauge that tracks US crude, retreated 0.91 per cent to $64.01 per barrel.
Russia and Ukraine have traded attacks on energy infrastructure, resulting in damage to a Russian oil refinery.
The US has also doubled its tariffs on India as punishment for its imports of discounted Russian oil, taking the total levy on the import of goods from the south Asian nation to 50 per cent.
The US commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ending August 22 decreased by 2.4 million barrels from the previous week, indicating higher demand for oil in the world's largest economy.
At 418.3 million barrels, the US crude oil inventories are about 6 per cent below the five year average for this time of year, according to the latest report from Energy Information Administration (EIA).
The Iran-Israel conflict, demand concerns, a slowing global economy and less-than-stellar growth in China, the world's largest crude importer, have affected oil prices this year.
Meanwhile, Opec+ has agreed to increase its oil production by 547,000 barrels per day for September, as the alliance led by Saudi Arabia and Russia continues to unwind voluntary cuts introduced during the Covid pandemic.
Opec+ member countries are scheduled to hold a meeting on September 7 to decide their future production policy.
The group has been steadily increasing output since April this year as it focuses to regain market share.
“We expect rising Opec+ supply and a seasonal fall in global refining activity from September will result in a pick-up in global oil stockpiles in coming months,” Vivek Dhar, an analyst at Commonwealth Bank of Australia commodities, said in a note.
He forecast Brent oil futures falling to $63 per barrel in the fourth quarter of 2025.
