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UAE Fuel Prices Increase: Inflation Allowance Grants up to Dh900 to some Families

The Ministry of Community Empowerment’s inflation allowance programme offers up to Dh900 in monthly fuel support to eligible Emirati families

As motorists across the UAE adjust to the recent uptick in petrol and diesel prices at the pumps this April, the government’s robust social support system continues to work ensuring that the rising cost of living does not burden the nation’s most vulnerable citizens.

The UAE Fuel Price Committee announced that Super 98 petrol will cost Dh3.39 per litre in April, up from Dh2.59 in March, while Special 95 petrol rises to Dh3.28 per litre from Dh2.48. 

E-Plus 91 petrol climbed to Dh3.20 per litre from Dh2.40, and diesel saw the sharpest jump, reaching Dh4.69 per litre compared to Dh2.72 previously, an increase of over 70 per cent .

The new rates took effect on April 1, driven by the continued rise in global oil prices amid ongoing regional tensions and supply disruptions.

Mitigating the impact of global inflation

The UAE launched its comprehensive inflation allowance programme in 2022 as a strategic response to global economic shifts. 

Designed to mitigate the impact of worldwide inflation on the most deserving Emirati families, the initiative provides temporary and variable rather than fixed monthly support. This dynamic approach enhances the ability of these citizens to cope with fluctuating daily expenses and maintain a balanced quality of life.

Spearheaded by the Ministry of Community Empowerment, the programme aligns closely with national priorities. It takes into account changing economic conditions, inflation indicators, and the high cost of living, focusing its resources squarely on the most deserving groups.

The comprehensive allowance package is structured to address key household expenses, comprising a fuel allowance, a food allowance, and an electricity and water allowance.

The Ministry, in cooperation with its strategic partners, is continuously developing the inflation allowance programme to ensure optimal benefit. The primary goal is to guarantee that this vital support reaches the right people, reflecting the government’s unwavering commitment to achieving living balance and improving the overall well-being of its citizens.

The fuel allowance component is particularly relevant given the recent fluctuations in global energy markets. It is disbursed to eligible recipients based on the prevailing price of Special 95 fuel, to be activated whenever the price exceeds Dh2.1 per litre.

The fuel allowance is structured across three distinct price tiers:

  • When the price of Special 95 fuel ranges between Dh2.1 and Dh2.85 per litre, eligible families receive an allowance of Dh300.
  • If the price climbs to between Dh2.86 and Dh3.6 per litre, which applies to the current April rate of Dh3.28, the support doubles to Dh600.
  • In the event that prices reach Dh3.61 per litre or above, the allowance peaks at Dh900.

This financial support is to the head of the household, while an Emirati wife is also entitled to receive a similar amount of support, capped at a maximum of one wife per household. 

Through these targeted measures, the UAE continues to demonstrate its proactive approach to safeguarding the prosperity and stability of its citizens, ensuring that essential living costs remain manageable even during periods of economic volatility.

Source: Khaleejtimes

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