The first monthly reduction since February offers relief after four consecutive months of sharp fuel price increases.
Dubai: Motorists in the UAE will pay notably less to refuel from July 1, after authorities announced the first fuel price reduction in four months following earlier increases linked to the Middle East conflict.
The UAE Fuel Price Committee lowered rates across all fuel grades for July, reflecting a sharp drop in global oil prices during June. This came as shipping through the Strait of Hormuz began to recover and concerns over prolonged supply disruptions eased significantly.
New July fuel prices
From July 1, motorists will pay the following rates:
Super 98: Dh3.40 per litre, down from Dh3.95 in June (55 fils, or 13.9%)
Special 95: Dh3.29, down from Dh3.83 (54 fils, or 14.1%)
E-Plus 91: Dh3.21, down from Dh3.76 (55 fils, or 14.6%)
Diesel: Dh3.60, down from Dh4.33 (73 fils, or 16.9%)
The reductions are among the largest month-on-month cuts since the UAE introduced market-linked fuel pricing in 2015.
How much will you save?
The latest cut will immediately reduce fuel expenses for commuters and families travelling during the summer months.
For a typical 60-litre sedan using Super 98:
June: around Dh237
July: around Dh204
Saving: approximately Dh33 per tank
For an 80-litre SUV or 4×4:
June: around Dh316
July: around Dh272
Saving: about Dh44 per fill-up
Diesel users will see even greater savings following the 73-fils-per-litre cut. Before the recent conflict, Super 98 was priced at Dh2.45 in February, while Special 95 stood at Dh2.34 and E-Plus at Dh2.26.
Although fuel prices remain higher than four months ago, the July reduction partially offsets the sharp increases recorded between March and June.
Why prices have fallen
The July revision reflects a sharp turnaround in global oil markets. Brent crude averaged around $106 a barrel in May, when conflict in the Gulf and disruptions to shipping through the Strait of Hormuz briefly pushed prices above $110–$120.
However, through June, oil prices declined significantly as commercial shipping resumed and diplomatic efforts eased concerns about a prolonged supply shock. Brent recently traded near $73 a barrel, broadly returning to levels seen before the conflict began.
Since UAE fuel prices are linked to the previous month’s average global oil prices, the lower June crude rates have directly translated into reduced pump prices for July.
Relief, but risks remain
While the outlook has improved, energy markets remain sensitive to developments in the Gulf. Renewed missile and drone activity involving Iran over the weekend briefly pushed oil prices up by about 1% on Monday, before falling again by as much the following day.
CNN and MarineTraffic data show that traffic through the Strait of Hormuz doubled over a 24-hour period last week, reaching its highest level since late February. However, commercial shipping remains below normal levels, as higher insurance and freight costs continue to push up oil expenses.
Analysts warn that any renewed disruption to shipping or breakdown in diplomatic efforts could quickly reverse the recent decline in crude prices.
What happens next?
The July cut is the clearest indication yet that the fuel price surge triggered by the Middle East conflict is starting to ease.
Whether motorists see further relief in August will largely depend on global oil price movements in the coming weeks. If Brent crude stays near current levels and shipping through the Strait of Hormuz continues to normalise, UAE fuel prices could keep trending downward.
However, if geopolitical tensions rise again, the recent decline in prices could quickly reverse.
