Sylvie Willis
Dubai is known for its low fuel prices, which make renting a car an attractive option for tourists. The price of a litre of fuel in Dubai depends on the type of fuel. For example, in 2025, Special 95 petrol, the cheapest fuel option, cost AED 2.61 per litre, while diesel cost AED 2.63 per litre. In comparison, in the UK in 2022, fuel duty on a litre of petrol or diesel was £0.5295 (2.64 AED) plus 20% VAT.
| Characteristics | Values |
|---|---|
| Fuel prices compared to other parts of the world | Very low |
| Cheapest fuel option | Special 95 petrol |
| Cost of Special 95 petrol per litre | AED 2.61 |
| Cost of Special 95 petrol for a 45-litre tank | AED 117.45 |
| Cost of Special 95 petrol for a 53-litre tank | AED 140.50 |
| Cost of diesel per litre | AED 2.63 |
| Cost of E-Plus 91 per litre | AED 2.51 |
| Cost of Super 98 per litre | AED 2.70 |
| Cost of Super fuel per month | AED 1000 |
| Cost of Yukon(special) 5.3L v8 per month | AED 3500 |
| Cost of Mazda 3 fuel per month | AED 1500 |
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What You'll Learn
Dubai fuel prices are low compared to the rest of the world
Dubai is known for its low fuel prices, which are extremely affordable compared to those in other parts of the world. The city's well-developed road network and abundance of petrol stations make renting a car an attractive option for tourists.
The price of a litre of fuel in Dubai is significantly lower than in most other countries. For example, as of July 5, 2025, a litre of Special 95 petrol, the most commonly used fuel in Dubai, cost only AED 2.58, equivalent to $0.70, €0.60, £0.52, or ₹60.20. In contrast, the fuel duty on a litre of petrol or diesel in the UK in 2022 was £0.5295 (2.64 AED, $0.72).
The low fuel prices in Dubai can be attributed to several factors. Firstly, the United Arab Emirates (UAE), of which Dubai is a part, is one of the world's largest oil producers. This keeps the price of raw materials low in the local market, boosting the economy and international tourism. Additionally, fuel prices in the UAE were previously subsidised by the government, with around $7 billion spent annually to keep prices low. Although these subsidies have been removed, fuel prices remain low compared to other countries.
It is worth noting that fuel prices in Dubai are not fixed and can fluctuate based on the price of crude oil in the global markets and the political situation in the region and worldwide. Prices are updated by institutions such as the Emirates National Oil Company (ENOC), which monitor the market situation and adjust prices accordingly.
The affordability and accessibility of fuel in Dubai make it a cost-effective option for those looking to explore the city and other nearby places in the UAE, such as Abu Dhabi and Ras Al Khaimah. With a full tank of petrol costing less than €30, renting a car in Dubai can be a budget-friendly way to get around during your stay.
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The UAE is one of the world's largest oil producers
The United Arab Emirates (UAE) is among the world's top ten largest oil producers. It produces an average of 3.2 million barrels of petroleum and liquids per day, with some sources stating the figure is closer to 4 million barrels per day. The UAE is also the fifth-largest exporter of oil in the world.
About 96% of the UAE's roughly 100 billion barrels of proven oil reserves are located in Abu Dhabi, ranking sixth worldwide. The Abu Dhabi National Oil Company (ADNOC) is a global leader in the oil and gas industry and is active in all sectors. ADNOC operates fourteen subsidiary companies under the ADNOC Group, with ADNOC Onshore and ADNOC Offshore accounting for most of the UAE's oil and gas production.
ADNOC has outlined ambitious plans for the future, aiming to reach 5 million barrels of maximum sustainable production capacity by 2030. The company is also investing heavily in new extraction technologies to increase recovery rates and prolong output. One such project is the Ruwais Derivatives Park (TA'ZIZ Industrial Chemicals Zone), which will become the world's largest integrated refinery and petrochemicals complex.
The UAE's oil wealth has transformed the country, with Dubai in particular becoming a world-class city. The country has also successfully diversified its economy beyond oil, with the sector now only playing a minor role in Dubai's economy. However, low fuel prices persist in the UAE, with a litre of petrol costing under AED 2.61, making it an attractive option for tourists looking to rent a car and explore the country.
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Fuel prices are not fixed, they fluctuate
Fuel prices in Dubai are notably low compared to other parts of the world. The city's well-developed road network and petrol stations make renting a car an attractive option for tourists.
Prices at the pump are based on a benchmark provided by S&P Global Platts, with a margin added by the Ministry of Energy to compensate for transport costs and operating expenses. These prices are implemented by retailers at the beginning of each month. The UAE withdrew fuel subsidies in 2015, and since then, petrol and diesel prices have been set by the UAE Fuel Price Committee, based on a global petroleum price benchmark.
Fuel prices are not fixed and can fluctuate based on several factors. The primary driver of fuel prices in Dubai is the cost of crude oil in global markets. When global oil prices rise, fuel prices in Dubai also tend to increase. For example, when global oil prices surged past $100 per barrel between March and July 2022, fuel prices in Dubai and the UAE also increased. The Russia-Ukraine war was a significant contributor to this rise, as sanctions against Russian oil imports reduced the overall supply.
Additionally, the political situation in the region and worldwide can also impact fuel prices in Dubai. Institutions like the Emirates National Oil Company (ENOC) monitor the market situation and adjust prices accordingly. Other factors that influence fuel prices include supply and demand dynamics, taxes, and the cost of production and distribution.
The fluctuation in fuel prices can have a significant impact on consumers' budgets and transportation choices. For instance, some individuals may opt for electric vehicles like Teslas to reduce their fuel consumption and associated costs.
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The UAE withdrew fuel subsidies in 2015
The UAE has some of the highest rates of fossil fuel energy subsidisation in the world. In 2013, consumer subsidies on oil, gas, and electricity accounted for between 65 and 80% of the full cost of supply in the GCC. In 2011, GCC governments spent US$51 billion on petrol and diesel subsidies, of which the UAE accounted for about US$2.4 billion.
However, in January 2015, the Minister of Energy in the UAE, Suhail Al Mazroui, announced that lifting energy subsidies was "just a matter of time". Six months later, on 22 July, the UAE government announced that the prices of gasoline and diesel would be deregulated from 1 August. The decision was based on in-depth studies demonstrating its long-term economic, social, and environmental impact.
The UAE's decision to withdraw fuel subsidies was influenced by several factors. Firstly, energy subsidies crowd out renewable energy investment and disincentivize energy efficiency improvements. The GSI estimated that the annual cost of energy subsidies in the Middle East and North Africa was greater than the cost of meeting regional 2020 renewable energy targets. Secondly, the rapid fall in world oil prices created a window of opportunity to phase out subsidies without causing significant economic disruption. Finally, the domestic sale of fuels at prices below international market rates was a fiscal strain on the UAE government.
Following the withdrawal of fuel subsidies in 2015, the UAE established a committee to set domestic fuel price levels on a monthly basis. As a result, retail petrol prices in Dubai and the UAE are updated monthly and are influenced by global oil prices. As of July 5, 2025, the price of a litre of Special 95 petrol in Dubai is 2.58 AED (equivalent to $0.70, €0.60, £0.52 or ₹60.20).
The UAE has also taken other steps to improve energy efficiency and reduce consumption, such as the Energy Strategy for 2050, which aims to diversify the energy mix and improve energy efficiency.
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Petrol and diesel prices are set by the UAE Fuel Price Committee
Dubai is known for its low fuel prices, which are a result of the discovery and extraction of oil in the region. The UAE is one of the world's largest oil producers, which keeps the price of raw materials low on the local market. This has contributed to the development of the UAE and boosts international tourism.
Petrol and diesel prices in the UAE are set by the UAE Fuel Price Committee. Fuel prices are not fixed and can fluctuate depending on the price of crude oil on the global markets and the political situation in the region and worldwide. Institutions such as the Emirates National Oil Company (ENOC) monitor the market situation and adjust prices accordingly.
The most commonly used fuel in Dubai is Special 95 petrol, which is suitable for a wide range of vehicles and is the cheapest option at AED 2.61 per litre. For a 45-litre tank, this equates to AED 117.45 (€29.57).
The low fuel prices in Dubai make renting a car an attractive option for tourists, as it is a cheap way to explore not only Dubai but also other places in the UAE. With a rented car, visitors can easily access popular attractions such as Dubai Harbour, the Dubai Mall, the Burj Khalifa, Palm Jumeirah, and the water park Atlantis Aquaventure.
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Frequently asked questions
The price of fuel per litre in Dubai varies depending on the type of fuel and the date of purchase. As of July 5, 2025, the prices for one litre of fuel were:
- E-Plus 91 — 2.51 AED
- Special 95 — 2.58 AED or 2.61 AED
- Super 98 — 2.70 AED
- Diesel — 2.63 AED
The United Arab Emirates is one of the world's largest oil producers, which keeps the price of raw materials low on the local market.
Fuel prices in Dubai are influenced by the price of crude oil on the global markets and the political situation in the region and worldwide. Prices are updated by institutions such as Emirates National Oil Company (ENOC), which monitor the market situation on a monthly basis and adjust prices accordingly.
Fuel prices in Dubai are generally considered to be extremely low compared to other parts of the world. For example, in the UK in 2022, the fuel duty on a litre of petrol or diesel was £0.5295 (2.64 AED, $0.72), plus 20% VAT.
The cost to fill up a tank of fuel in Dubai depends on the size of the tank and the type of fuel. For example, based on 95 octane petrol and a 45-litre tank, it would cost AED 117.45 (€29.57) to fill up the tank.
