The UAE is preparing to announce its retail fuel prices for May 2025, and residents are watching closely. With global oil prices fluctuating and the local economy sensitive to changes at the pump, many are eager to see how their monthly budgets may be affected.
What happened in April?
In April, fuel prices dropped across the board:
- Super 98 fell to Dh2.57 per litre (from Dh2.73 in March)
- Special 95 dropped to Dh2.46 (from Dh2.61)
- E-Plus 91 declined to Dh2.38 (from Dh2.54)
- Diesel eased to Dh2.63 (from Dh2.77)
These cuts followed declines in global oil prices, which the UAE’s fuel pricing committee adjusts for each month — a policy introduced after deregulating prices in 2015.
What’s driving global oil trends now?
Oil prices dipped in April, largely due to concerns over weakening global demand amid a continued trade standoff between the U.S. and China. Brent crude fell below $65 a barrel, and West Texas Intermediate slipped under $62. A significant drop in a key U.S. manufacturing index added to fears that President Donald Trump’s tariffs are straining economic activity.
However, despite the downturn, the oil market remains tight. A key indicator — backwardation — is signaling strong short-term demand: June oil futures are priced higher than July’s, a pattern often linked to immediate supply pressure. That pricing gap is now the widest it’s been in nearly three months.
What does this mean for UAE fuel prices in May?
Given the UAE’s policy of aligning fuel prices with global oil averages, May’s rates are expected to reflect the recent softening in oil — but also account for market signals suggesting tight supply ahead.
That means while another price cut is possible, it’s likely to be smaller than April’s, or fuel costs may even hold steady depending on oil market activity in the final days of April.
When will we know?
The UAE typically announces fuel prices on the last day of the month, so official rates for May 2025 are expected to be confirmed on April 30.
With oil markets showing mixed signals, short-term weakness but signs of strength just ahead, UAE motorists should be prepared for modest changes, not drastic shifts, in next month’s petrol and diesel prices.
