UAE petrol, diesel prices for January 2026: Will you see a rise or fall at the pump?

January UAE fuel prices expected to stay close to December as oil sees small year-end rise

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Dubai: Fuel prices in the UAE for January 2026 will be announced in the coming days. Global oil markets have moved slightly higher at the end of December, and this could influence what drivers pay in the new month.

Prices ticked up from November to December as oil became slightly more expensive and supply risks built toward year-end. Across 2025, UAE fuel prices tracked global market movements — climbing the most around mid-year, easing in the following months, and settling again by December.

Oil trends affecting costs

Global oil prices ended the year slightly higher, with both major global oil benchmark Brent and US crude benchmark gaining more than 4.5% in the last trading days of December. The rise came from stronger demand signals in the US and renewed geopolitical tensions.

Supply risks also pushed prices up. Venezuela’s oil exports were delayed by US enforcement actions, and limited onshore storage forced more crude to sit offshore in tankers, slowing supply flows. Venezuelan heavy crude is used by specific refineries to produce diesel and jet fuel, so disruptions are harder to replace. The ongoing Russia–Ukraine war also continues to restrict expectations of higher Russian supply.

At the same time, concerns about excess oil remain. Industry data showed a recent increase in US crude stocks, and analysts still expect global inventories to grow through 2026, lowering the chances of a sustained jump in prices.

How January prices will look

Current oil trends point to January fuel prices staying close to December levels, as modest crude gains late in the year are largely offset by expectations of higher global inventories. Unless crude makes a stronger move, petrol and diesel rates are expected to remain broadly unchanged.

A small increase is still on the table if supply issues in Venezuela worsen or geopolitical risks intensify, which would lift benchmark prices enough to nudge UAE pump rates higher.

A slight reduction is less likely but not impossible if confirmed stockpile data shows larger-than-expected builds or if demand cools after the holidays — conditions that would place more downward pressure on diesel than petrol.

What this means for motorists

  • Expect January fuel prices similar to December

  • Small changes either way are possible, depending on final crude averages

  • Prices will be confirmed in the last days of December, before the new month begins

Justin is a personal finance author and seasoned business journalist with over a decade of experience. He makes it his mission to break down complex financial topics and make them clear, relatable, and relevant—helping everyday readers navigate today’s economy with confidence. Before returning to his Middle Eastern roots, where he was born and raised, Justin worked as a Business Correspondent at Reuters, reporting on equities and economic trends across both the Middle East and Asia-Pacific regions.

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