July Sees Uptick in UAE Fuel Prices — But Lower Base Oil Costs Could Be Ahead
Dubai: Fuel prices in the UAE have increased for July, as announced by the UAE Fuel Price Committee. While motorists will feel the pinch at the pump, lubricant buyers and industry, insiders are closely watching global trends—especially as recent drops in crude oil and base oil prices hint at potential cost relief in the coming months.
For July, Super 98 petrol is priced at AED 2.70 per liter (up from AED 2.58 in June), and Special 95 is now AED 2.58 per liter (previously AED 2.47 per liter). E-Plus will retail at AED 2.51 per liter, compared to AED 2.39 in June. Diesel, commonly used in heavy machinery and transport fleets, has also risen to AED 2.63 per liter from AED 2.45.
These changes are significant not only for drivers but also for businesses reliant on fuel and lubricants. The transport, logistics, and automotive sectors often adjust their operating costs in line with such price shifts. However, with global oil prices currently trending downward due to easing geopolitical tensions, there’s cautious optimism that base oil and lubricant costs might begin to soften by next month [source].
At Fubex Lubricants, we closely monitor these developments to ensure our pricing remains competitive and fair for our customers across the UAE and beyond.
Why Base Oil Prices Are Dropping Again
Base oil prices experienced a sharp decline last week—dropping nearly 13%—breaking a steady three-week upward trend. Earlier increases in June had caused finished lubricant prices to climb slightly in early July.
The key factor behind the recent drop was a ceasefire agreement between Israel and Iran, which helped ease concerns over potential supply disruptions from the Middle East. Since this region plays a crucial role in supplying crude oil—the raw material for base oils—market volatility softened.
As the geopolitical tension eased, global base oil markets stabilized. Brent crude dipped to nearly $67 per barrel, while West Texas Intermediate hovered around $65. This marked the steepest weekly drop in oil prices in more than two years, impacting feedstock costs for lubricant manufacturers.
Additional pressure came from financial markets as hedge funds increased short positions on crude oil, anticipating further declines. There is also speculation that OPEC+ may increase output by an additional 411,000 barrels per day in August. If supply continues to outpace demand, this could lead to even lower base oil prices, creating a ripple effect across the lubricant production chain.
What This Means for Lubricant Buyers in the UAE
While lubricant prices in the UAE are influenced by local refining, blending, and distribution costs, they remain closely tied to global trends in base oil and crude oil.
With the recent decline in crude prices and market stabilization, the cost of base oils may also soften—potentially leading to more competitive pricing for finished lubricants in the coming months.
Unless geopolitical tensions arise or there are sudden supply cuts, businesses and vehicle owners in the UAE are likely to benefit from reduced lubricant costs by August or September.
Although July’s higher prices may put short-term pressure on procurement budgets, there’s a strong chance that if current market trends continue, some pricing relief may be just around the corner.
Editor-at-Large
A passionate writer in the lubricant industry, Awais Iqbal has been covering oils, greases, and industrial fluids since the start of his career. At 25, he’s already written for blogs, catalogs, and brand guides across the UAE. Awais’s insights help companies connect with their audience, and his clear, helpful writing style is trusted by brands in the region.
