By: Economy Middle east

The UAE Fuel Price Committee announced on Wednesday the official petrol and diesel prices for January 2026, with declines across all categories. This announcement comes as part of the committee’s monthly fuel price review, which reflects global oil market trends and domestic economic considerations.

The new rates for January 2026 are as follows:

• Super 98: AED2.53 per liter, compared to AED2.70 per liter in December.
• Special 95: AED2.42 per liter, compared to AED2.58 per liter in December.
• E-Plus 91: AED2.34 per liter, compared to AED2.51 per liter in December.
• Diesel: AED2.55 per liter, compared to AED2.85 per liter in December.

The UAE changes petrol and diesel prices on a monthly basis to align with global oil markets. In December, oil prices continued to fluctuate, impacted by several economic, geopolitical and market factors.

On Wednesday, oil prices rose but remained on course for a drop of more than 15 percent in 2025, as supply continued to outstrip demand in a year shaped by geopolitical tensions, higher tariffs, increased OPEC+ production and sanctions on Russia, Iran and Venezuela.

Brent crude futures, down almost 18 percent and marking their steepest annual percentage fall since 2020, are heading for a third consecutive year of losses, the longest losing streak on record. Meanwhile, WTI was headed for a 19 percent annual decline. The 2025 average prices for both benchmarks are the lowest since 2020, LSEG data showed.

Most analysts anticipate that supply will outpace demand next year, with forecasts ranging from the International Energy Agency’s estimate of 3.84 million barrels per day to Goldman Sachs’ projection of about 2 million barrels per day.

Brent is projected to average around $62.23 in 2026, while WTI is seen closer to $59. For context, Brent has averaged $68.80 so far in 2025, so these forecasts imply a meaningful step down in pricing power next year.

The monthly price change is a direct outcome of the UAE’s decision, enacted in August 2015, to liberalize fuel prices. Before this decision, petrol prices were heavily subsidized by the UAE government.