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Fuel prices drop for January 2026: Here’s what UAE motorists will pay at the pump

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Fuel prices are dropping across the UAE just in time for the new year, and that’s good news for motorists heading into 2026.

The UAE Fuel Price Committee has announced petrol and diesel prices for January 2026, confirming a month-on-month decrease across all fuel types. The new rates came into effect on Thursday, January 1, following the official announcement on December 31.

UAE fuel prices for January 2026

Here’s what drivers will pay at the pump this month:

  • Diesel: Dh2.55 per litre
  • Super 98: Dh2.53 per litre
  • Special 95: Dh2.42 per litre
  • E-Plus 91: Dh2.34 per litre

Compared to December, prices have fallen noticeably, with diesel down from Dh2.85 per litre and Super 98 dropping from Dh2.70. Special 95 and E-Plus 91 have also seen similar reductions, offering some welcome relief for daily commuters and long-distance drivers alike.

Why fuel prices change every month in the UAE

If you’ve ever wondered why petrol prices shift so often, it’s all part of the UAE’s fuel pricing policy.

Fuel prices in the UAE are reviewed and updated monthly by the Fuel Price Committee, which aligns local fuel rates with global oil prices. This system was introduced in 2015 when the country liberalised fuel prices, moving away from fixed rates.

What this means for motorists

Lower fuel prices can make a noticeable difference, especially for residents who rely on private transport for daily commutes, road trips, or business travel. With January seeing a drop across the board, drivers can expect slightly cheaper refuelling costs as the year begins.

As always, fuel prices will be reviewed again at the end of the month, with February rates set to be announced on January 31, 2026.

For now, it’s a positive start to the year at the pump, and a small win for wallets across the UAE.

With over 35 years of experience in journalism, copywriting, and PR, Michael Gomes is a seasoned media professional deeply rooted in the UAE’s print and digital landscape.

Business

UAE fuel prices drop sharply: Here’s what you’ll pay from July 1

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Motorists across the UAE will pay significantly less at the pump from July 1 after the UAE Fuel Price Committee announced a sharp reduction in petrol and diesel prices for July 2026.

All fuel grades have become cheaper compared to June, with Super 98 falling by 55 fils per litre, while diesel has dropped by 73 fils per litre.

All fuel grades have become cheaper compared to June, with Super 98 falling by 55 fils per litre, while diesel has dropped by 73 fils per litre.

Fuel prices for July

  • Super 98: Dh3.40 per litre (down from Dh3.95)
  • Special 95: Dh3.29 per litre (down from Dh3.83)
  • E-Plus 91: Dh3.21 per litre (down from Dh3.76)
  • Diesel: Dh3.60 per litre (down from Dh4.33)

The new rates take effect on Tuesday, July 1, 2026.

The UAE Fuel Price Committee reviews retail fuel prices every month, with rates adjusted in line with movements in global oil and energy markets.

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Dubai to build region’s first falcon market and transform the creek into night-time destination

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Dubai is set to welcome a one-of-a-kind falcon market and a spectacular new lighting experience along Dubai Creek after Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, approved a series of major development projects aimed at enhancing the city’s cultural, tourism and public spaces.

The new initiatives, announced by Dubai Municipality, include the Dubai Falcon Market, the first integrated falcon market of its kind in the region, and the Dubai Creek Lighting Project, which will transform one of the city’s oldest landmarks into a vibrant night-time destination.

Region’s first integrated falcon market

Designed to celebrate the UAE’s rich falconry heritage, the Dubai Falcon Market will combine tradition with modern architecture inspired by the wings of a falcon.

Spanning around 50,000 square feet and built at an estimated cost of Dh50 million, the market will feature specialist falcon shops, equipment stores, cultural exhibition spaces, heritage events, a dedicated veterinary clinic and visitor experiences, all within a purpose-built destination showcasing one of the country’s most treasured traditions.

The project also forms part of Dubai’s wider strategy to develop rural and desert areas while preserving Emirati heritage and creating new attractions for residents and tourists.

Dubai Creek to shine with new night-time experience

Dubai Creek, one of the emirate’s most historic waterfronts, is also set for a major makeover.

The Dubai Creek Lighting Project will introduce an innovative lighting system stretching across 8km of the creek, illuminating promenades, heritage markets, waterfront walkways, building façades and key entry points.

The aim is to transform the area into a lively evening destination while highlighting its architectural and cultural significance.

Once completed, visitors can expect enhanced pedestrian areas, interactive public spaces and a striking visual experience designed to bring new life to the historic district after sunset.

The project is expected to be completed in the first quarter of 2027.

Commenting on the projects, Sheikh Hamdan said Dubai remains committed to developing people-focused urban spaces that combine innovation, sustainability and advanced technology while preserving the emirate’s identity and cultural heritage.

The latest initiatives form part of Dubai’s long-term vision to create world-class public spaces, strengthen the tourism and creative sectors, and enhance the quality of life for residents and visitors alike.

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Dubai’s new AI design competition offers Dh200,000 in cash prizes

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Think you can design the park of the future? Dubai Municipality is inviting architects, designers, students and AI enthusiasts to do exactly that, with the help of artificial intelligence.

Under the directives of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, Minister of Defence, and Chairman of The Executive Council of Dubai, Dubai Municipality has launched what it says is the world’s first AI-powered park design challenge, allowing participants to reimagine Al Safa 2 Park using AI-driven tools. The competition also offers a total prize pool of Dh200,000.

Designing future of public parks

The initiative aims to explore how artificial intelligence can support every stage of park design, from analysing the site and understanding user needs to generating concepts, testing ideas and creating visualisations.

While AI will play a central role in the creative process, Dubai Municipality stressed that final design decisions will remain human-led.

Participants are expected to submit a master plan for Al Safa 2 Park, along with supporting data analysis, design concepts and visualisations that demonstrate how AI was used throughout the project.

Open to professionals, students and startups

The competition is open to a wide range of participants, including architects, urban planners, landscape designers, researchers, university students, startups and AI specialists.

Entries should showcase how artificial intelligence was integrated into different stages of the design process, including environmental analysis, spatial planning, user experience and performance optimisation.

Focus on sustainability and community

Designs will be assessed on more than just creativity.

Dubai Municipality is looking for practical proposals that improve sustainability, accessibility, wellbeing, inclusivity and social interaction while creating vibrant public spaces that enhance residents’ quality of life.

A panel of government officials and international experts will evaluate the submissions, with members of the public also getting the opportunity to help choose the winning designs.

Dh200,000 prize pool

The competition offers cash prizes for the top three entries:

  • First prize: Dh100,000
  • Second prize: Dh65,000
  • Third prize: Dh35,000

Applications are open until August 15, through Dubai Municipality’s official competition platform (https://aipark.dm.gov.ae/ai-competition).

The initiative reflects Dubai’s wider ambition to position itself as a global leader in AI, innovation and smart urban development by combining emerging technologies with human creativity to shape the cities of the future.

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