When UAE Deregulated Oil Prices 10 Years Ago, Sparking 24% Hike

Ten years ago, UAE motorists woke up to a day when the government removed subsidies on fuel. It was a weekend - and with the deregulation of oil prices - pump prices were hiked by 24 per cent, aligning with global rates at that time.

The new petrol and diesel prices were actually announced by the UAE Ministry of Energy three days earlier, on July 28, 2015. The most commonly used Special 95 petrol saw a 24 per cent increase from Dh1.72 during the subsidised oil price regime to Dh2.14, for a 42 fils hike per litre.

Anticipating the increase, several petrol stations were abuzz with activity as drivers queued up to fill up their tanks before the hike came into play. Khaleej Times captured long lines of cars waiting at petrol stations in Dubai and Sharjah.

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Mixed emotions were also evident at petrol stations that day. As Khaleej Times reported, some motorists supported the move, while others felt they“were not given enough information about the reasons for the hike.”

“I really think it's fair. The price is based on the fair market. I don't see any problem with this at all,” said one Dubai resident that day. While another one retorted,“Of course, this petrol price hike is going to be a big problem for me. That extra cost adds up each time.”

UAE motorists were used to enjoying cheap oil prices and some drivers who spoke to Khaleej Times expressed surprise at the rate of the increase.“That seems like a lot. This will surely have repercussions,” noted a Pakistani expat who also anticipated an increase in taxi fares.

Another Dubai driver said he believed the hike in petrol prices would primarily affect the large SUVs that are ubiquitous on the streets of the UAE.

“For me and my smaller car, this is okay,” noted the Indian expat who added:“The problem here is that Dubai is a place where many, many people drive big cars. They will be the people who will end up having to pay much more.”

Azhar Zia ur-Rehman, a long-time resident of the UAE, meanwhile, urged residents to not overreact to the announcement.“Let us look at it logically instead of emotionally,” he said.“The two major expenses for a family here are accommodation and education. If the government can bring these down, no one will mind paying the increased price for petrol.”

Some residents also told Khaleej Times that a 24 per cent hike in fuel price“is okay long as salaries rise faster than before.”

On the brighter side, the price of diesel drastically went down that day - from Dh2.90 to Dh2.05 per litre. Traders reacted positively to the revised rate.

On another note, Thomas Edelmann, founder and managing director of RoadSafetyUAE, said residents should treat the oil price deregulation as an opportunity to reflect on the link between fuel consumption and driving behaviour in the UAE.

He said higher fuel prices usually lead to increased efforts from motorists to display a more economical behaviour.“This usually results in a less fuel-demanding driving style, carpooling, avoiding of unnecessary trips, and a shift to use of public transportation,” he added.

Simply put, fewer cars on the road means less congestion and less stress.“It is fair to assume improved driving behaviour will not only impact our wallets, it could have a positive impact on road safety too,” Edelmann noted.

Since the UAE deregulated petrol prices in 2015 and aligned them with global rates, the rates are revised at the end of every month .

Fuel prices for August 2025 were announced on July 31. Super 98 petrol is Dh2.69 per litre, as compared to Dh2.70 last month. Special 95 petrol is Dh2.57 per litre, a neglible .05 fil increase to July's rate of Dh2.58. Diesel saw a slight increase at Dh2.78 per litre, compared to last month's Dh2.63, but still comfortably below the Dh2.90 per litre price 10 years ago, when oil prices were heavily subsidised.

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