As the year wraps up, motorists across Dubai and the wider UAE are waiting for the next fuel price announcement. The UAE petrol and diesel prices for January 2026 will be confirmed in the final days of December, following the country’s regular monthly review.
Early signs point towards stability. Global oil prices have moved slightly higher toward the end of the year, but not enough to trigger a major jump at the pump. For most drivers, this likely means starting January with fuel prices very close to what they paid in December.
Fuel costs matter here. From early morning school drop-offs in Al Barsha to late-night drives along Sheikh Zayed Road, petrol prices are part of everyday conversations. Even a small change can affect monthly spending.
Where Fuel Prices Stand Right Now?
December saw a noticeable rise in fuel prices compared to November, particularly for diesel. Petrol prices increased modestly, while diesel recorded a sharper jump.
Here’s where prices landed in December:
- Super 98: Dh2.70 per litre
- Special 95: Dh2.58 per litre
- E-Plus 91: Dh2.51 per litre
- Diesel: Dh2.85 per litre
For many residents, diesel’s increase was felt the most. It affects delivery vans, taxis, buses, and even food supply chains. That knock-on effect often shows up in everyday costs, from courier services to grocery deliveries.
These December prices now form the base for January. Unless oil prices move sharply in the coming days, big changes are unlikely.
Oil Prices and Fuel Rates in UAE
UAE fuel prices follow global oil trends, reviewed monthly. Towards the end of December, oil markets edged higher. Both major benchmarks gained more than 4.5 percent in the final trading days of the year.
Several factors pushed prices up. Demand signals from the US improved, suggesting stronger consumption. At the same time, geopolitical tensions returned to the spotlight, which often makes oil markets nervous.
Supply risks also played a role. Delays in oil exports from Venezuela reduced the flow of heavy crude into global markets. This type of oil is important for producing diesel and jet fuel, and it is not easy to replace quickly.
The ongoing Russia–Ukraine war continues to add uncertainty. While Russian oil still reaches global markets, expectations around future supply remain unclear, keeping prices sensitive to any new developments.
Prices Are Still Expected to Stay Steady
Despite these pressures, there is another side to the story. Global oil inventories are expected to rise in 2026. Recent data showed an increase in US crude stockpiles, which helps ease fears of long-term shortages.
When stock levels rise, it often limits how far oil prices can climb. That is one of the main reasons analysts do not expect a sharp increase in fuel prices at the start of the new year.
For January, the late-December rise in oil prices is largely balanced out by expectations of higher supply in the months ahead. This keeps UAE petrol and diesel prices within a narrow range.
January 2026 Fuel Prices Could Look Like
Based on current trends, January fuel prices are likely to remain close to December levels. Any changes are expected to be small.
A slight increase is still possible. This could happen if supply disruptions worsen, especially around Venezuelan exports, or if geopolitical tensions escalate suddenly. In that case, petrol and diesel prices could edge up by a few fils.
A small decrease is less likely, but not off the table. If post-holiday demand slows more than expected or fresh data confirms larger oil stock builds, diesel prices could see mild downward pressure.
For now, the most realistic outcome is stability.
for Daily Life in Dubai
For residents, steady fuel prices bring some breathing room. After a year of fluctuating rates, a calm start to January is welcome news.
Daily commuters, ride-hailing drivers, and families who rely on their cars will appreciate the lack of surprises. Stable fuel prices also help businesses plan better, especially logistics companies and delivery services that operate across the city.
With traffic picking up again after the holiday season, predictable fuel costs make budgeting simpler for both households and companies.
When Will January Fuel Prices Be Announced?
The UAE Fuel Price Committee usually confirms new rates in the last few days of each month. January 2026 prices will be announced before the New Year and will take effect from January 1.
Updated prices typically appear at petrol stations across Dubai, Abu Dhabi, Sharjah, and the Northern Emirates almost immediately after the announcement.
Until then, current indicators suggest drivers should expect prices very similar to December.
January 2026 is shaping up to be a steady month at the pump. Petrol and diesel prices in the UAE are expected to remain largely unchanged, with only minor movements possible depending on final oil market averages.
For most drivers, that means no major adjustments to fuel budgets as the new year begins.
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