UAE Raises Fuel Prices Effective December 1, 2025 as Transport Costs Expected to Increase
The United Arab Emirates (UAE) has officially announced an adjustment to its fuel prices for December 2025, confirming an increase across all types of petrol and diesel. The announcement was delivered by the UAE Fuel Price Committee, the government-appointed body responsible for monitoring and setting monthly fuel tariffs. The new rates, which took effect on December 1, have attracted public attention as they come ahead of the busy year-end travel period, when mobility typically rises.
Under the updated pricing, Super 98, Special 95, and E-Plus 91 petrol have all recorded an increase of several fils per litre. Diesel has also risen, reversing the slight decrease seen in November. These adjustments mean daily transportation expenses will rise for many residents, particularly workers who rely on private vehicles for their daily commute across different emirates.
The current pricing policy aligns with the UAE’s fuel market reform introduced in 2015, when the government decided to remove long-standing fuel subsidies. Since then, fuel prices have been determined according to global crude oil trends, distribution expenses, import and storage costs, as well as operational margins for energy companies. This model aims to ensure long-term market transparency and sustainable energy management.
The December price increase follows a global rise in oil prices driven by various external factors. Production cuts from OPEC+ member states, geopolitical tensions in oil-producing regions, and heightened energy demand entering the winter season have all contributed to the upward movement in crude prices. As a country that pegs its retail fuel prices to international markets, the UAE’s adjustment reflects these global pressures.
The impact of the increase is expected to be felt by households, especially private-sector workers who travel long distances daily. Transportation costs will likely rise, while logistics companies, delivery services, and freight operators may revise their operational charges to accommodate higher fuel expenses. However, some businesses have noted that the increase remains manageable compared to previous fluctuations.
Despite the public concerns, the UAE continues to support its monthly pricing mechanism, calling it a tool for stabilizing the energy sector. By linking domestic fuel prices to market movements, the government reduces long-term fiscal pressure from subsidies and encourages more efficient energy use among residents. The transparent pricing system also allows consumers to anticipate changes and plan their expenditures accordingly.
Energy analysts say the UAE’s approach serves as an example for other countries facing the volatility of global oil markets. Even as a major oil-producing nation, the UAE has chosen a market-driven model rather than maintaining perpetual subsidies. The decision highlights the country’s long-term commitment to economic efficiency and its ability to adapt to international energy dynamics.
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