General

UAE petrol prices may edge higher in May amid oil volatility, unlikely to hit Dh4 mark yet

Petrol prices in the UAE are expected to see a slight increase in May as global oil markets remain volatile, though analysts suggest prices are unlikely to reach the Dh4-per-litre mark in the immediate term.

Fuel rates are revised monthly by the UAE’s Fuel Price Committee, with the next update due on April 30.

Oil prices drive outlook

Global crude prices traded mostly in the high $90s to above $100 per barrel during April, influenced by geopolitical tensions and disruptions to supply chains, particularly around the Strait of Hormuz.

Although prices briefly eased following a temporary ceasefire between the US and Iran, renewed tensions pushed oil back above the $100 level, keeping upward pressure on fuel costs.

Modest increase expected

The average Brent crude price rose to around $99.16 per barrel in April, compared to $96.96 in March. This suggests a possible marginal increase in UAE petrol prices for May, following a sharp hike in April when prices rose by nearly Dh0.80 per litre.

Current April prices stand at:

Super 98: Dh3.39 per litre
Special 95: Dh3.28 per litre
E-Plus: Dh3.20 per litre

Industry observers say any increase in May is likely to be incremental rather than significant.

Dh4 per litre unlikely for now

While concerns remain about petrol prices crossing Dh4 per litre again, experts indicate that such a spike would require a sustained surge in oil prices well above current levels.

The UAE last recorded petrol prices above Dh4 per litre in 2022 following the Russia-Ukraine war, when global energy markets experienced extreme disruption.

Supply pressures remain a risk

The ongoing regional situation, including disruptions to oil flows through the Strait of Hormuz—responsible for a significant share of global supply—continues to pose risks to price stability.

However, unless supply constraints intensify further, petrol prices are expected to remain below previous record highs in the near term.

The final fuel prices for May will be officially announced by the UAE Fuel Price Committee at the end of April.