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UAE petrol prices drop nearly 14% for July after four months of hikes
Retail fuel prices in the UAE had risen by more than 60% during February-June 2026 due to the US-Israel-Iran military conflict and closure of the Strait of Hormuz
- PUBLISHED: Tue 30 Jun 2026, 11:11 AM UPDATED: Tue 30 Jun 2026, 11:29 AM
The UAE petrol prices fell in July 2026 after four consecutive months of rises, dropping nearly 14 per cent, or Dh0.55 per litre, due to a decline in global oil prices following the US-Iran ceasefire and expectations of more Gulf oil entering global energy markets.
From July 1, the price of Super 98 has been slashed from Dh3.95 to Dh3.4 per litre, Special 95 from Dh3.83 to Dh3.29 per litre, and E-Plus 91 from Dh3.76 to Dh3.21 per litre.
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Retail fuel prices in the UAE rose by more than 60 per cent during February-June due to the US-Israel-Iran war and the closure of the Strait of Hormuz.
As reported by Khaleej Times, petrol prices were expected to drop significantly in July 2026 due to the US-Israel-Iran ceasefire and the expected increase in Gulf oil reaching global markets. Brent dropped from $97.8 a barrel in the first week of June to around $72.7 a barrel on Tuesday, June 30.
The price reduction has brought big relief for the middle class and budget-conscious residents. Fuel budgets for some residents have increased by hundreds of dirhams over the past few months due to rising local and global petrol prices.
The Middle East witnessed more hostilities between Iran and the US over the weekend. The risk of a re-escalation of the conflict continues to simmer in the background, but so far, the recent confrontations seem to follow a tit-for-tat pattern.
The oil market's reaction has been contained, with oil prices trading up temporarily but remaining close to $70. There might be several reasons for this. With the alternative export routes still in full use, transits through Hormuz do not need to recover to pre-conflict levels for overall trade to normalise. Anecdotally, the pick-up in transits has been driven more by government-owned than by private ships, possibly due to greater risk tolerance but also to pragmatism in restoring trade.
“Also, the reported attacks and damage seem minimal. That said, the hostilities are about the scramble for control of the strait. While Iran has a hold on the northern route, the southern route along the Omani coast has become popular over the past weeks thanks to US support and a shift towards two-way traffic,” said Norbert Rücker, Head of Economics and Next Generation Research, Julius Baer.
He noted that there is a broad common interest in normalisation – by the United States due to inflation concerns, by Iran given its economic stress, and by the Iran-friendly buyers of oil and other goods out of the Gulf region to re-establish supply chains.
“This should contain the risk of a meaningful re-escalation of the conflict,” he added.
