By: Oil & gas Middle east

UAE petrol and diesel prices for March 2026 are due to be announced at the end of the month, with current oil market dynamics pointing to a potential modest increase after two consecutive months of cuts.

Oil & Gas Middle East previously reported that the UAE Fuel Price Committee set February rates at Dh2.45 per litre for Super 98, Dh2.33 for Special 95, Dh2.26 for E-Plus 91 and Dh2.52 for diesel. January prices were slightly higher, marking two straight months of declines since December.

Fuel prices in the UAE are reviewed monthly and linked to average global oil prices and refined fuel costs from the preceding period. Movements in crude benchmarks typically filter through to pump prices with a lag.

According to the report by Gulf News, oil markets have strengthened in recent weeks, with Brent trading near the $71 mark amid renewed focus on US-Iran nuclear discussions. Analysts have pointed to a geopolitical risk premium in crude, with S&P Global’s Daniel Yergin estimating around a $10 premium tied to uncertainty over US-Iran tensions, after Brent touched $72.33 on 23 February.

Despite the recent rally, the broader supply-demand balance remains relatively comfortable. Analysts describe the market as structurally oversupplied, with risk sentiment rather than physical shortages driving prices higher.

Given that oil prices are currently above levels seen during the pricing window that informed February’s cuts, March pump rates are more likely to edge higher than fall again. Any adjustment, however, is expected to be moderate unless geopolitical tensions escalate further and sustain crude prices near recent highs.

Diesel prices could respond more quickly to shifts in global supply risk, particularly if concerns persist around key shipping routes.

Over the past year, UAE motorists have experienced both increases and reductions, reflecting volatility in global oil markets. Prices climbed through mid-2025, peaked around October and then eased into early 2026.

The official March 2026 fuel prices will be confirmed when the new rate list is released later this month.