The UAE Fuel Price Committee has announced the official petrol and diesel prices for May 2025, and it’s good news for drivers across the country. Fuel prices have been reduced for the second consecutive month, giving much-needed financial relief to both individuals and businesses.
Effective from May 1, 2025, petrol and diesel prices across the UAE are:
- Super 98 petrol: AED 2.57 per litre
- Special 95 petrol: AED 2.46 per litre
- E-Plus 91 petrol: AED 2.38 per litre
- Diesel: AED 2.63 per litre
These figures represent a noticeable drop from April 2025 prices. Last month, Super 98 was AED 2.73, Special 95 was AED 2.61, E-Plus 91 was AED 2.54, and diesel was at AED 2.77 per litre. With the new May prices in place, residents will now save between 15 to 20 fils per litre, depending on the fuel type.
Why Are UAE Fuel Prices Falling?
The UAE adjusts its fuel prices monthly based on global oil prices and supply-demand dynamics. The decision to reduce fuel rates again in May is influenced by several key factors:
- Lower Global Oil Prices: International crude oil markets have been relatively stable in recent weeks, with Brent crude hovering around $80 per barrel. This level is lower compared to earlier spikes observed last year when prices exceeded $90.
- Global Economic Conditions: A softening of global demand, especially from major economies like China and parts of Europe, has led to reduced pressure on oil supply. This decline in demand plays a key role in keeping oil prices in check.
- Stronger UAE Dirham: Since the UAE Dirham is pegged to the US Dollar, the strengthening of the dollar against other global currencies has helped lower import costs for crude oil and refined products.
- Stable Local Refining and Distribution Costs: The UAE benefits from advanced refining infrastructure and stable logistics, allowing it to efficiently manage local fuel distribution even as international markets shift.
How Does This Impact UAE Residents?
This continuous drop in fuel prices is a big relief for everyday commuters, especially those who rely heavily on personal vehicles or long-distance travel. For example:
- A person who drives an average sedan with a 50-litre fuel tank using Super 98 petrol would save around AED 8 per full tank compared to last month.
- For Special 95 users, the savings would be approximately AED 7.50 per tank.
- Over a month, regular commuters could save upwards of AED 30 to AED 50, depending on their fuel usage.
For businesses in logistics, transport, and delivery services, the reduction in diesel prices can result in substantial cost savings. Lower fuel costs may also contribute to keeping the prices of goods and services stable, which is crucial for overall economic health.
Business and Industry Reactions
Several transport and logistics companies across the UAE have welcomed the move. Many fleet operators and ride-hailing services are expected to benefit from the lower fuel costs, which may translate to better service rates or higher margins.
Grocery delivery services, construction businesses, and public transportation providers may also see an operational boost. In competitive sectors like e-commerce and same-day delivery, even a small drop in fuel costs can provide a major edge.
Retailers in the automotive industry say that steady or falling fuel prices help encourage car sales, especially for larger vehicles like SUVs or pickups, which typically consume more fuel.
Fuel Price Trends Over the Past Year
To better understand the current trend, it’s helpful to look back at how fuel prices in the UAE have changed month by month:
- May 2024: Super 98 – AED 3.34
- June 2024: Super 98 – AED 3.14
- September 2024: Super 98 – AED 3.31
- December 2024: Super 98 – AED 2.61
- February 2025: Super 98 – AED 2.74
- April 2025: Super 98 – AED 2.73
- May 2025: Super 98 – AED 2.57
This shows a clear downward pattern, especially in the last few months. The last time fuel prices were this low was more than a year ago, making this a noteworthy development for both drivers and analysts monitoring the economy.
How Are UAE Fuel Prices Set?
The UAE deregulated fuel prices in 2015. Since then, a government-appointed committee meets every month to evaluate global oil prices and adjust domestic rates accordingly. The goal is to reflect the true market cost of fuel, promote responsible consumption, and support the country’s sustainability goals.
The monthly pricing includes distribution costs, operational charges, and the government’s fixed value-added tax (VAT) of 5%. By adjusting prices monthly, the UAE remains agile in adapting to international oil fluctuations while ensuring transparency for consumers.
What to Expect in the Coming Months
While the current trend is positive for consumers, analysts urge caution. Oil markets can be unpredictable due to geopolitical tensions, production decisions by major oil-producing countries, and seasonal changes in demand.
For now, however, the outlook remains stable. Unless major global events disrupt supply chains or spike demand, fuel prices are expected to stay relatively moderate through the summer months.
Tips for Fuel Efficiency Amid Price Fluctuations
Even with falling prices, it’s always wise to maximize fuel efficiency. Here are a few simple tips to help UAE residents save even more:
- Avoid unnecessary idling: Turn off your engine if you expect to be stopped for more than a minute.
- Keep your tyres properly inflated: Underinflated tyres increase fuel consumption.
- Limit use of air conditioning: Excessive A/C use can drain fuel faster, especially in stop-and-go traffic.
- Drive smoothly: Avoid rapid acceleration and hard braking.
- Carpool or use public transport when possible.
Conclusion
The announcement of lower petrol and diesel prices in May 2025 is welcome news for all in the UAE, from private motorists to large companies. With global oil markets currently calm and the UAE’s transparent pricing mechanism in place, both short-term and long-term fuel management appears steady.
Residents are advised to keep track of monthly fuel price changes and plan accordingly, whether for daily commuting, holiday travel, or business operations. As always, fuel prices for the following month will be released near the end of May 2025.
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