Prime Highlights:
- Petrol and diesel in the UAE have been cut down for May 2025.
- The new rate will be valid from May 1, aligned with international prices of oil.
Key Facts:
- Super 98 petrol now stands at AED 2.61 per liter from AED 2.74.
- Special 95 petrol now stands at AED 2.50 per liter from AED 2.63.
- Diesel now stands at AED 2.68 per liter from AED 2.82.
Key Background
UAE Fuel Price Committee has also issued a decrease of retail fuel prices in May 2025 with the direction heading in sync with falling global crude prices. Such changes are made part of the monthly review of fuel prices being done by the nation since the de-regulation of fuel prices in 2015. In this case, fuel prices within the UAE get updated under the system based on international market conditions.
For May, Super 98 petrol has fallen to AED 2.61 per litre from AED 2.74 in last April, and Special 95 petrol is now priced at AED 2.50 per litre, down from AED 2.63. Diesel also fell, from AED 2.82 to AED 2.68 per litre. This steady fall in rates is a reflection of falling global oil prices due to a range of contributory factors.
One of the primary reasons for the fall is a apparent decrease in the price of Saudi Arabia’s crude oil exports, seen to lower its price to its Asian buyers to a three-month low. This move comes at a time when the world benchmarks of oil have fallen sharply as a result of oversupply in the market. Oil producing countries and industry experts have witnessed higher stocks in the world, which has lowered prices and compelled suppliers to cut down on their export levels.
In addition, market experts also attributed that the world has seen demand for oil trailing previous estimates, resulting in having excess supply. Both the International Energy Agency and the Organization of the Petroleum Exporting Countries reported decreasing demand from key markets, further tugging at prices.
In the UAE, reduction in fuel prices should only be temporary relief to businesses and consumers. Lower transport and logistics costs would minimize inflationary pressure and enhance general economic activity. Continuous price adjustment allows for openness and reaction to international economic conditions, consistent with the UAE promise of reasonable fuel prices to residents and industries.
