UAE: Why petrol prices are likely to drop in May 2025
As a result of the US tariff dispute and fears of a global economic downturn, petrol prices in the UAE are set to decrease in May 2025 after considerably dropping in April 2025.
In early April, the Brent price fell to $62.8 per barrel and stayed in the $60 range for the rest of the month due to the tariff dispute.
On Monday, Brent was selling at $66.90 and WTI at $63.13. In March, the average Brent price reached $71 per barrel, bringing the average for April up to $66.6.
Petrol prices in the UAE saw their second consecutive drop in April 2025, with Super 98, Special 95 and E-Plus 91 priced at Dh2.57, Dh2.46 and Dh2.38 per litre, respectively. It's expected that petrol prices will change on the last day of the month, which is when they are usually modified.
The UAE began linking its local retail petrol prices to international benchmarks in 2015 as part of its deregulation drive. Besides the tariff, OPEC+ also decided to increase oil production much faster than anticipated, which had a negative impact on crude oil prices.
Saxo Bank predicts in its second quarter outlook at the start of this month that Brent crude would be within the range of $65 to $85 a barrel.
"Observing the US government’s recent sanctions on the Iranian oil trading network, this was later pursued when the President of the US, Donald Trump, proclaimed that there would be a 25% taxation on any country that purchases Venezuelan crude oil," Trump said.
The investment bank stated in a note that "while the market reaction right away may not make sense and is negligible, this does offer some support for more ‘short covering’ from hedge funds who have been underfunded and over-hedged."
With that said, check out the monthly crude oil prices under 2024 and 2025:
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