Wednesday, April 23, 2014
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Living in Dubai

Prices of Gasoline / Petrol / Diesel in Dubai

Ever-since the oil was discovered in the UAE during the 1960s, the emirate has evolved from being a poor region of principalities to a wealthy modern state with high standard of living, particularly Dubai and Abu Dhabi. Further, with the recent economic diversification efforts, the proportion of oil and gas dependent economy is just 25 percent. The UAE is said to be the eighth biggest oil producer in the world.

Petrol Price in Dubai

The usage and pricing of gasoline here is dependent on factors such as crude oil prices, processing and distribution costs, local demand, strength of local currencies, availability of local sources of gasoline, and local taxation. Fuels are traded across the world, and although the trade prices may be similar, the price paid by consumers reflects the national pricing policy, in general. Some regions, such as Japan and Europe, impose high taxes on gasoline, while others such as Venezuela and Saudi Arabia, subsidize the cost. Western nations, particularly the United States, have the highest usage rates of gasoline per person.

Abu Dhabi, the UAE Capital, holds more than 90percent of UAE’s oil reserves and refines and sells its own crude. However, petrol prices in the UAE are more than neighboring countries. This is because, although oil can be taken out of the ground in a comparatively cheap manner in the UAE, it is not all refined locally into petrol. Although Abu Dhabi has few refining facilities, Dubai has none. The country subsidized about 68 percent of the cost of gasoline as of 2010. However, despite its oil wealth, the UAE had to import its gasoline as it lacks refining capacity.

The petrol prices in the UAE are the fifth cheapest worldwide. The money that the emirate pays for petrol is less than one-fifth paid in Turkey, which is one of the most expensive petrol prices. The cheapest petrol is found in Venezuela, followed by Saudi Arabia, Kuwait and Egypt, with UAE following Egypt.


The prices of petrol recorded in the year 2008 were Dh.4.56 per litre, when diesel prices fluctuated heavily. However, the prices climbed steadily thereafter, with transport companies such as the Dubai-based Euro Movers International feeling the pinch. By the year 2013, the prices of fuel shot up considerably.


The average retail price for petrol is Dh.6.50 per gallon. The petrol prices are capped across Dubai, but diesel prices are not.


Oil retailers Emirates National Oil Company (ENOC) and Emirates Petroleum Products Company (EPPCO) lowered diesel prices by 20 fils a litre or 5.41 percent across all service stations in June 2013. The new diesel price effective 1st June 2013 is Dh.3.50 per litre, down from 3.70 per litre.

Compressed Natural Gas (CNG)

CNG is an alternative fuel for cars in the UAE. This is a unique pipe-less, cost-effective, and environment-friendly natural gas transportation solution, to be implemented across UAE, aimed at reducing carbon emissions and cutting down fuel costs. Government vehicles will first switch to CNG, followed by private cars. This will soon serve as an environment-friendly alternative to petrol or diesel within next five years.

The total cost of conversion per vehicle from gasoline to CNG is Dh.7,400 for 4-cylinder vehicle, Dh.8000 for 6-cylinder, and Dh.9,400 for 8-cylinder vehicles,

The CNG cost is Dh.1.32 per cubic meter, wherein a tank of 4-cylinder vehicle can be filled completely with Dh.50-60, while Gasoline (special) costs Dh.1.72 per litre. The saving for converted diesel vehicles to CNG is 40 percent, and converted petrol cars to CNG is 30 to 35 percent.

Note: The prices given herein are not comparable as they convert different grades of petrol.