UAE Fuel Prices for December 2025 Announced: Why They Changed & How It Works

If you are driving to work today, you might notice a slight change at the pump. It is the first of the month, which means the UAE Fuel Price Committee has just reset the rates for all seven emirates. For December 2025, we are seeing a slight increase across the board compared to last month.

Before we dive into why these prices fluctuate (and the secret formula behind it), here is the snapshot of what you will be paying starting today.

At a Glance: December 2025 Fuel Rates

Effective from December 1, 2025

The Big Question: Why Did the Price Change?

If you are new to the UAE, you might find this monthly “price roulette” confusing.

Before August 2015, this wasn’t the case. Fuel prices were fixed and heavily subsidized by the government (meaning they paid part of your bill). But in a major policy shift, the UAE moved to a deregulated system.

This switch happened for two main reasons:

1. Economic Health: It removes the burden of billions of dirhams in subsidies from the state budget.
2. Sustainability: When people pay the real global price for fuel, they tend to drive more efficient cars or use public transport, which is better for the environment.

Now, the price you pay is linked directly to the global market—but it’s not just the oil price.

Deconstructed: The Official Price Formula

Who actually decides that Special 95 should be AED 2.58 this month?

It’s not random. A group called the Fuel Price Committee meets at the end of every month. This group includes representatives from the Ministry of Energy, the Ministry of Finance, and the fuel distributors (ADNOC & ENOC).

They use a specific formula to calculate the rate:

The Global Baseline (The Biggest Chunk)

They look at the average global price of refined petrol (not just crude oil) using benchmarks from S&P Global Platts. If the global market goes up, our prices go up.

Operating Costs

This covers the logistics: getting the fuel from the refinery to the port, storing it, and trucking it to the station near your house.

The Retailer Margin

Gas stations are businesses, too. The formula includes a fixed margin (approx. 45 fils/litre) to cover their staff salaries, electricity, and maintenance. This ensures that even if oil prices crash, gas stations don’t go bankrupt.

VAT (5%)

Finally, the standard 5% Value Added Tax is slapped on top, contributing to the government’s non-oil revenue.

Which Fuel Should You Choose?

When you pull up to the pump, you’ll see three colorful nozzles. Choosing the wrong one is the easiest way to waste money.

• Super 98 (The Green/Blue Nozzle):
  • Best for: High-performance sports cars (Ferraris, Porsches) or cars with high-compression engines.
  • Verdict: If you drive a standard sedan or SUV (Toyota Camry, Nissan Patrol), putting this in your car does not make it faster. It just burns a hole in your wallet.
• Special 95 (The Red Nozzle):
  • Best for: 90% of cars on UAE roads.
  • Verdict: This is the standard. If your manual doesn’t explicitly say “Premium Only,” use this.
• E-Plus 91 (The Green Nozzle):
  • Best for: Older cars, fleet vehicles, or low-compression engines.
  • Verdict: It’s the cheapest option and perfectly safe for many budget cars. Check your owner’s manual—if it says “91 Octane or higher,” save yourself the cash and use E-Plus.

Quick Recap

• When do prices change? Midnight on the 1st of every month.
• Who sets them? The Fuel Price Committee (Govt + Distributors).
• Why did they go up this month? Global oil benchmarks rose slightly in November, and Diesel saw a demand spike.

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