Brief

UAE diesel price hits Dh4.80 per litre, raising delivery cost concerns

The Fuel Price Committee lifted diesel to Dh4.80 a litre, the highest in years, sparking warnings from logistics executives about delivery fees.

By Felo News Desk · Published Sat, 03 Oct 2026 12:33:18 GMT

Dubai – The UAE's Fuel Price Committee raised diesel to Dh4.80 per litre on October 1, the highest level in years, an 11.6% increase from September's Dh4.30, Gulf News reported.

What happened

The monthly revision came as global oil markets remained volatile after the February 28 regional crisis and the expiration of a 60‑day US‑Iran ceasefire, which Gulf News said has led to intensified Houthi attacks on Red Sea oil infrastructure. Retail fuel costs have risen more than 60% since the crisis began. The diesel hike adds to transportation, freight and last‑mile delivery expenses for businesses that operate vehicle fleets.

What the reports add

Gulf News noted that while the diesel price rose 11.6%, the increase will not translate directly into an equivalent rise in delivery charges. Companies with dense delivery networks can offset higher fuel costs by completing more deliveries per trip, according to the outlet.

What was said

Sam Achampong, Regional Director of CIPS for the Middle East, Africa and Asia‑Pacific, told Gulf News, “The bigger issue is how long these fuel prices persist. Businesses can absorb short‑term volatility; sustained higher costs eventually have to be dealt with somewhere in the value chain.” He added that the first response should be efficiency rather than passing the cost on to customers, suggesting route optimisation, shipment consolidation and reducing failed deliveries.

Tobias Maier, CEO of DHL Global Forwarding Middle East and Africa, also commented to Gulf News, “Diesel prices are certainly an important factor for the logistics industry, but they are only one component within a much broader cost equation. The greater challenge often comes from increased operational complexity.”

How it came about

The price rise follows a series of earlier reports by Felo News on UAE fuel adjustments. On September 29, Felo detailed a potential increase in diesel to Dh4.30/L and noted Brent crude hovering around $105 a barrel. A later Felo piece on October 1 highlighted a broader 16% jump in petrol prices, prompting commuters to shift to public transport. The current diesel surge continues the trend of monthly adjustments tied to global benchmarks and regional geopolitical tensions.

Key facts

Diesel price rose to Dh4.80 per litre, up 11.6% from September (gulfnews.com)
Fuel Price Committee adjusts rates monthly based on global oil prices (gulfnews.com)
Logistics executives warn sustained diesel costs could affect delivery fees (gulfnews.com)