Motorists across the UAE are facing a sharp rise in petrol and diesel prices this April, prompting many to adjust their budgets as the cost of fuel climbs. In response, the government’s inflation allowance programme continues to provide financial relief, ensuring that essential living costs remain manageable for the nation’s most vulnerable households.

The UAE Fuel Price Committee announced that Super 98 petrol will cost Dh3.39 per litre in April, up from Dh2.59 in March. Special 95 petrol has increased to Dh3.28 per litre from Dh2.48, while E-Plus 91 petrol rose to Dh3.20 from Dh2.40. Diesel saw the steepest increase, jumping to Dh4.69 per litre compared to Dh2.72 previously — a rise of more than 70 per cent. These new rates took effect on April 1, influenced by global oil price fluctuations and regional supply dynamics.

Supporting Families Amid Rising Costs

To help households cope with rising expenses, the UAE’s inflation allowance programme, launched in 2022, provides targeted support to Emirati families most affected by global price shifts. Unlike fixed subsidies, the programme offers variable assistance based on current economic conditions and the cost of living, helping recipients manage daily expenses effectively.

Managed by the Ministry of Community Empowerment, the programme is designed to align with national priorities, ensuring that support reaches the most deserving citizens. It includes allowances for fuel, food, and utilities such as electricity and water, offering a comprehensive safety net against inflation.

How the Fuel Allowance Works

Given the current fuel price surge, the fuel allowance is particularly relevant. The support is calculated based on the price of Special 95 petrol and is automatically triggered whenever prices exceed Dh2.1 per litre.

The allowance is structured in three tiers:

• Dh2.1 – Dh2.85 per litre: Eligible families receive Dh300.

• Dh2.86 – Dh3.6 per litre: Support increases to Dh600, which applies to the current April rate of Dh3.28.

• Dh3.61 per litre or above: The maximum allowance of Dh900 is granted.

The payment is directed to the head of the household, and an Emirati wife may also receive an equal amount, capped at one wife per household.

Ensuring Stability During Volatile Markets

This proactive approach highlights the UAE’s commitment to safeguarding citizen welfare during periods of economic uncertainty. By linking support to actual fuel prices and essential living costs, the programme ensures that families are not unduly affected by global market fluctuations.

As fuel prices continue to fluctuate, the UAE’s targeted allowances serve as a vital tool in maintaining household stability and supporting the overall well-being of the population. The government remains committed to refining these measures to ensure they remain effective and responsive to citizens’ needs.