In October 2026, fuel prices in the United Arab Emirates (UAE) were increased by 60 fils per liter, which amounted to over 16 percent. This caused prices to reach their highest level in more than four years amid rising global oil prices driven by the war in the Middle East.
On Wednesday, the UAE Fuel Price Committee increased the cost of Super 98 gasoline from 3.80 dirhams to 4.40 dirhams per liter, Special 95 from 3.69 to 4.28 dirhams, and E-Plus 91 from 3.61 to 4.21 dirhams for October 2026.
Fuel prices surpassed the 4 dirham per liter mark for the first time in over four years after gasoline prices rose above this mark following the start of the war between Russia and Ukraine in February 2022.
In July 2022, gasoline prices reached record highs: Super 98 cost 4.63 dirhams per liter, and Special 95 cost 4.52 dirhams per liter.
Ongoing tensions between the US and Iran, as well as the closure of the Strait of Hormuz, supported high crude oil prices, as oil prices rose compared to the previous month in September 2026. Due to regional tensions, Brent crude in September traded at or above $100 per barrel.
The rise in oil prices occurred on Wednesday after US President Donald Trump refused to ease sanctions against Iran, while Qatar advocated for peace talks. This followed a drop in prices in the previous session, which was linked to the resumption of crude oil supplies from the Middle East.
On Wednesday morning, Brent and WTI crude traded at $102.80 and $89.28 per barrel, respectively. On Tuesday, Brent reached $107 per barrel amid escalating rhetoric between the US and Iran.
Vijay Valecha, Investment Director at Century Financial, noted that the deadlock between the US and Iran regarding the Strait of Hormuz pushed oil prices up and maintained pressure on the US Federal Reserve to raise interest rates again. He added that oil remains a key market driver, as increased energy costs intensify inflationary pressure and expectations of further rate hikes. 'After Trump rejected Iran's proposal to resume operations in the Strait of Hormuz, the yield on two-year interest rate sensitive Treasury bonds also rose by six basis points to 4.91 percent,' he stated.
