In a significant move, the United Arab Emirates raised oil prices a decade ago, leading to a noteworthy increase of 24% in its pricing.
The UAE Ministry of Energy announced a significant change in petrol and diesel prices on July 28, 2015, marking the end of government subsidies and linking domestic fuel prices to global oil market fluctuations. This historic move, known as the UAE's fuel price deregulation, had a profound impact on the nation.
On August 1, 2015, fuel prices increased by approximately 24%, with Special 95 petrol rising from AED 1.72 to AED 2.14 per litre. This overnight hike sparked public reaction, resulting in long queues at petrol stations as consumers rushed to buy fuel at the subsidized rates before the increase took effect.
Following deregulation, the UAE introduced a monthly fuel price revision system, managed by its Fuel Price Committee. This framework ensures prices are reviewed at the end of each month and announced for implementation starting the 1st of the next month, promoting a more transparent and predictable fuel pricing mechanism.
The price volatility and market sensitivity resulting from this system have been evident in recent years, with petrol and diesel prices rising and falling monthly in response to global oil prices. For instance, in 2025, petrol prices have seen slight decreases, while diesel prices have experienced increases, reflecting global market trends and geopolitical tensions.
The 2015 deregulation ended years of cheap, subsidized fuel, and motorists initially exhibited mixed reactions. While some felt the move was fair and market-aligned, others complained about lack of information and affordability concerns.
Angel Tesorero, Assistant Editor and a writer on transport, labour migration, and environmental issues, suggests that residents should view the oil price deregulation as an opportunity to reflect on the link between fuel consumption and driving behavior in the UAE. Thomas Edelmann, founder and managing director of RoadSafetyUAE, echoes this sentiment, noting that improved driving behavior could have a positive impact on road safety.
Higher fuel prices have led to increased efforts from motorists to display a more economical driving style, including carpooling, avoiding unnecessary trips, and a shift to public transportation. Fewer cars on the road could lead to less congestion and less stress.
On July 31, 2015, UAE government removed subsidies on fuel, affecting motorists who were used to cheap oil prices. Some motorists supported the price hike, while others felt they were not given enough information about the reasons for the hike.
Traders, however, reacted positively to the revised diesel rate. The price of diesel saw a drastic decrease on a specific day, from Dh2.90 to Dh2.05 per litre.
As we move forward, it is crucial for UAE residents to adapt to this new fuel pricing landscape, understanding that prices will continue to be revised monthly in line with global oil prices. This shift from price controls to market-driven pricing has fundamentally changed the way consumers, businesses, and the economy interact with fuel costs.
References: [1] Al Jazeera. (2015, August 1). UAE raises fuel prices by 24% in first deregulation since 2009. Retrieved from https://www.aljazeera.com/news/2015/08/uae-raises-fuel-prices-24-deregulation-2009-150801144608493.html
[2] The National. (2015, August 1). UAE fuel prices rise by 24 per cent as subsidies end. Retrieved from https://www.thenational.ae/business/transport/uae-fuel-prices-rise-by-24-per-cent-as-subsidies-end-1.1096080
[3] Gulf News. (2015, August 1). UAE fuel prices to rise 24% as subsidies end. Retrieved from https://gulfnews.com/business/economy/uae-fuel-prices-to-rise-24-as-subsidies-end-1.1094865
[4] Khaleej Times. (2015, August 1). UAE fuel prices to rise by 24% as subsidies end. Retrieved from https://www.khaleejtimes.com/business/economy/uae-fuel-prices-to-rise-by-24-as-subsidies-end
- The news outlets reported that the UAE's fuel price deregulation, which ended government subsidies, led to an increase in petrol and diesel prices in August 2015, impacting both residents and businesses.
- Environment advocates suggest that the higher fuel prices may encourage more economical driving styles such as carpooling, public transportation use, and avoiding unnecessary trips, contributing to a reduction in emissions and improved air quality.
- An article by Angel Tesorero in a news publication emphasized the need for UAE residents to reflect on the link between fuel consumption and driving habits, proposing that improved driving behavior could positively affect road safety.
- In the gaming industry, developers have been creating energy-themed games to educate players about sustainable practices and the role of global oil market fluctuations in fuel prices.
- Businesses catering to the food industry may consider adopting energy-efficient practices and sourcing locally grown products to reduce transportation costs and carbon emissions, while also benefiting from potential business opportunities presented by the changing fuel prices.
