UAE Petrol Prices Set for a Small Rise in February 2026 After January Drop
Motorists and businesses in the United Arab Emirates should prepare for a potential increase at the pump next month. Following a welcome reduction in petrol prices in January 2026, early market data suggests a modest petrol price increase in February. This shift is driven by renewed upward movement in global oil prices, which directly influence the UAE’s monthly fuel pricing mechanism.
A Look Back at January 2026 Fuel Price Relief
In late December 2025, the UAE Fuel Price Committee announced lower rates effective January 1. This provided relief after a period of higher costs. The January 2026 prices were:
Super 98 petrol: Dh2.53 per litre
Special 95 petrol: Dh2.42 per litre
E-Plus 91 petrol: Dh2.34 per litre
Diesel: Dh2.55 per litre
This dip reflected a broader easing in global crude oil prices at the end of 2025.
Key Factors Pointing to a February Price Increase
Despite January’s relief, several international factors are applying upward pressure, making a February fuel price hike likely:
Rising Crude Benchmarks: Brent crude oil has traded higher in early 2026, in the range of $63–$66 per barrel.
Geopolitical Tensions: Ongoing instability in the Middle East adds a risk premium to oil prices.
Supply Uncertainties: Issues in major oil-producing nations like Venezuela create unpredictability in global shipments.
However, analysts note that ample global oil inventories should prevent a sharp spike, meaning any increase is expected to be moderate.
How the UAE’s Fuel Pricing System Works
Since its deregulation in 2015, UAE fuel prices have been linked to international oil markets. Each month, the committee reviews the average cost of global crude and refined products to set the following month’s domestic rates. This system leads to monthly fuel price fluctuations based purely on market dynamics.
February 2026 Forecast: What to Expect
Based on current trends, the consensus is a slight increase in petrol and diesel prices for February 2026. The recent firming of crude oil costs will be a primary factor in the committee’s calculation.
Diesel prices may see a slightly firmer adjustment due to its own distinct supply-demand factors.
Any increase is projected to be modest, not sudden, given comfortable global supply levels.
The final decision will be announced around January 31, 2026, with new prices taking effect on February 1, 2026.
Impact on UAE Drivers and the Economy
Even a small change impacts monthly budgets for UAE motorists and the operating costs of logistics and transport businesses. Fuel costs directly affect freight rates, taxi fares, and delivery charges, which can ultimately influence consumer prices.
The upcoming announcement will determine whether the January relief was a brief pause or the start of a more stable trend. All eyes are now on the UAE Fuel Price Committee’s end-of-January decision.
