Fuel markets in several Arab countries have seen varied movements at the start of 2026, as several countries announced fuel price reductions in line with falling global oil prices, while Algeria took an opposite step by raising prices for the first time since 2020.
Several Arab countries announced fuel price reductions effective January 1, 2026, in direct response to global oil prices falling to around $61 per barrel by the end of December 2025, amid signs of increased global supply and slowing demand in major industrial economies.
The reductions included Jordan, Qatar, the UAE, and Morocco, with the new prices taking effect at the start of the year, a move aimed at easing the cost of living for consumers and keeping pace with shifts in global energy markets.
In Morocco, fuel prices saw a notable decline, with the price of diesel falling below 10 dirhams per liter for the first time since 2021, and gasoline prices dropping below 12 dirhams per liter.
There was variation in distributors’ compliance with the reductions, as companies like Afriquia and Winxo quickly applied the new prices, while others kept their prices relatively higher.
This is the second reduction in a short period, following a previous cut in December of about 35 centimes per liter, a direct reflection of global oil price movements which have shown relative stability with a downward trend.
In Jordan, the Oil Derivatives Pricing Committee at the Ministry of Energy and Mineral Resources announced the implementation of reduced prices, including a cut of about 25 fils for 95 octane gasoline, and between 40 and 50 fils per liter for diesel.
This decision comes within the framework of supporting consumers amid rising living costs, especially given the heavy reliance of the transport and heating sectors on diesel, with expectations that the inflation rate will fall below 3 percent in the first quarter of 2026.
In Qatar, QatarEnergy announced a new list of fuel prices, setting the price of Premium 91 gasoline at 1.95 riyals per liter instead of 2.00 riyals, and diesel at 2.00 riyals per liter instead of 2.05 riyals.
In the UAE, the Fuel Price Committee at the Ministry of Energy and Infrastructure announced reductions in gasoline and diesel prices, with Super 98 gasoline priced at about 2.53 dirhams per liter instead of 2.70 dirhams, and diesel at 2.55 dirhams per liter instead of 2.85 dirhams.
This reduction comes amid rapid growth in the UAE economy, particularly in the tourism, transport, and logistics sectors, which helps lower operating costs and enhance the competitiveness of the local market.
In contrast, Algeria’s Ministry of Energy and Mines announced an increase in fuel prices for the first time in six years, explaining that the step aims to ensure the continuity of supplying the national market and covering the rising costs of production and distribution.
The ministry stated that the state still bears the difference between the real cost of fuel and the prices set at distribution stations, in order to preserve purchasing power and support economic activity.
The adjustment included raising the price of gasoline from 45.62 dinars to 47 dinars per liter, fuel oil from 29.01 to 31 dinars per liter, along with raising the price of liquefied petroleum gas (LPG) from 9 to 12 dinars per liter.
The ministry confirmed that these prices do not reflect the actual cost, which includes extraction, refining, transport, and distribution, noting that LPG remains the most economical option, as its price is four times lower than gasoline, as part of the state’s encouragement of this environmentally friendly
Algeria
Algeria is a North African country with a rich history shaped by ancient Berber kingdoms, Roman rule, and centuries of Ottoman influence. It gained independence from France in 1962 after a prolonged and brutal war of liberation. Its cultural heritage is reflected in diverse sites like the Roman ruins of Timgad and the historic Casbah of Algiers, a UNESCO World Heritage site.
Jordan
Jordan is a Middle Eastern country with a rich historical legacy, most famously home to the ancient city of Petra, a Nabatean capital carved into rose-red sandstone cliffs over 2,000 years ago. The region has been a crossroads of civilizations, later forming part of the Roman, Byzantine, and Ottoman Empires before becoming the modern Hashemite Kingdom of Jordan in 1946.
Qatar
Qatar is a sovereign country located on the northeastern coast of the Arabian Peninsula, historically shaped by its Bedouin heritage and maritime traditions like pearling. Its modern history was transformed by the discovery of vast oil and natural gas reserves in the mid-20th century, leading to rapid economic development and the rise of its capital, Doha, as a major global hub.
UAE
The United Arab Emirates (UAE) is a federation of seven emirates on the Arabian Peninsula, formed in 1971 following the end of British protection. Historically a region of pearl diving, fishing, and trade, it has rapidly transformed into a global hub of commerce, tourism, and modern architecture, most famously symbolized by Dubai’s Burj Khalifa. Its culture is deeply rooted in Islamic traditions and Bedouin heritage, which coexist with its contemporary, cosmopolitan cities.
Morocco
Morocco is a North African country with a rich history shaped by indigenous Amazigh (Berber) cultures, Arab influence from the 7th century, and successive dynasties like the Almoravids and Almohads. Its cultural sites, such as the ancient city of Fez and the Koutoubia Mosque in Marrakech, reflect this blend of Arab, Islamic, and Amazigh heritage. The country’s historic medinas, kasbahs, and varied landscapes from the Sahara Desert to the Atlas Mountains are central to its identity.
Afriquia
Afriquia is a Moroccan petroleum company, founded in 1932 as the African Petroleum Company, which historically played a key role in the country’s fuel distribution and energy sector. It is not a cultural or historical site, but a major commercial entity whose development is intertwined with Morocco’s modern economic history.
Winxo
Winxo is a fictional brand of collectible toys created by the French company Sylvania, first launched in 2007. The brand features colorful, stylized animal characters and has expanded into animated television series and various merchandise, primarily targeting a young audience.
Oil Derivatives Pricing Committee
The Oil Derivatives Pricing Committee is a governmental body in Saudi Arabia responsible for regulating and setting domestic fuel prices. It was established as part of broader economic reforms, notably the Vision 2030 plan, to reduce subsidies and align local prices more closely with international market rates. This move aims to diversify the economy and promote fiscal sustainability.
Ministry of Energy and Mineral Resources
The Ministry of Energy and Mineral Resources is the Indonesian government body responsible for managing the country’s energy and mining sectors. It was formally established in 2009, though its functions have existed under various ministerial names since Indonesia’s independence, evolving to oversee critical resources like oil, natural gas, coal, and minerals. Its primary role is to formulate policy and regulate these industries to support national development.
QatarEnergy
QatarEnergy is the state-owned petroleum company of Qatar, originally founded in 1974 as Qatar General Petroleum Corporation. It is central to the nation’s economy and is a global leader in the production and export of liquefied natural gas (LNG).
Fuel Price Committee
The Fuel Price Committee is a regulatory body established by the government to oversee and manage fuel pricing mechanisms, often in response to economic pressures or market volatility. Its history typically involves being formed during periods of significant fuel subsidy reforms or crises to stabilize prices and protect consumers. The committee’s role is to analyze costs and recommend adjustments to maintain a balance between market rates and public affordability.
Ministry of Energy and Infrastructure
The Ministry of Energy and Infrastructure is a government department in the United Arab Emirates, formed in 2021 by merging the Ministry of Energy and Industry with the infrastructure sector of the Ministry of Infrastructure Development. Its history is rooted in the nation’s strategic development plans, consolidating key functions to oversee the country’s energy resources, industrial growth, and major transportation and building projects.
Ministry of Energy and Mines
The Ministry of Energy and Mines is a government department typically responsible for overseeing a nation’s energy resources and mineral extraction industries. Its history is tied to the industrialization and economic development of a country, often evolving from earlier departments of mines or natural resources to address modern energy needs. The ministry’s specific founding date and historical milestones vary by country.
