Motorists across the United Arab Emirates are set to face higher fuel costs again in May 2026 as authorities announced another petrol price increase, marking the third consecutive monthly rise. This upward trend is fueled by global oil market instability, geopolitical tensions, and supply concerns.
New Fuel Prices Effective May 1, 2026
The UAE Fuel Price Committee revised rates for all major petrol categories, while diesel prices remained unchanged. From May 1, Super 98 petrol will cost Dh3.66 per litre, up from Dh3.39 in April. Special 95 rises to Dh3.55 from Dh3.28, and E-Plus 91 increases to Dh3.48 per litre. Diesel remains at Dh4.69 per litre.
This means filling a compact car with Super 98 will now cost around Dh186.66, while SUV owners could pay over Dh270 for a full tank, depending on vehicle size and fuel type.
Comparison of April and May Fuel Prices
- Super 98: Dh3.39 (April) to Dh3.66 (May) — increase of Dh0.27
- Special 95: Dh3.28 (April) to Dh3.55 (May) — increase of Dh0.27
- E-Plus 91: Dh3.20 (April) to Dh3.48 (May) — increase of Dh0.28
- Diesel: Dh4.69 (April) to Dh4.69 (May) — no change
Impact on Motorists and Businesses
The latest increase will immediately affect daily commuting costs. Compact cars will cost roughly Dh13 to Dh20 more to fill compared to April. Sedan owners will see fuel bills rise by nearly Dh17 on average, while SUVs could cost about Dh20 more per tank. Businesses dependent on transportation and logistics, such as delivery services, freight operators, and ride-hailing sectors, are expected to face rising operational costs if elevated fuel prices persist.
Despite the increases, fuel prices in the UAE remain lower than in many global markets due to comparatively lower taxes and the country's strong domestic energy infrastructure.
Reasons Behind the Price Hikes
The latest hikes are closely tied to movements in international crude oil markets. Since the UAE deregulated petrol prices in 2015, monthly retail fuel prices have been linked directly to global oil benchmarks, refining costs, and supply-demand conditions.
Oil markets have remained volatile throughout 2026 due to ongoing geopolitical instability in the Middle East. Analysts point to tensions involving Iran, fears surrounding the Strait of Hormuz, and disruptions to regional energy infrastructure as key reasons behind higher crude prices. At one stage during March, Brent crude reportedly moved close to the $115-per-barrel mark as fears grew over supply disruptions across major oil shipping routes. Approximately one-fifth of global oil trade passes through the Strait of Hormuz, making any instability in the region a major concern for energy markets worldwide.
Analysts also cite strong demand from Asian markets and tighter global supply conditions as factors keeping upward pressure on prices. Even though the UAE announced its exit from OPEC and OPEC+ from May 1, experts believe domestic fuel prices will still largely follow global crude trends rather than local production decisions alone.
