Rising petrol prices in the United Arab Emirates during April have triggered a noticeable shift in consumer behaviour, with automobile companies reporting a growing interest in hybrid and electric vehicles as drivers look for more cost-effective options.
The increase in demand comes as fuel prices edged higher this month, reversing a two-month decline. Super 98 petrol is now priced at 3.39 dirhams per litre, Special 95 at 3.28, E-Plus 91 at 3.2, while diesel has climbed to 4.69 dirhams per litre. The rise has been linked to ongoing regional tensions, which have contributed to volatility in global oil markets.
Industry players say the impact has been immediate. Cars24 Arabia reported a sharp increase in customer interest, particularly in the Dubai market. Its chief executive Abhinav Gupta said dealers recorded a 30% rise in enquiries as fuel costs increased.
Gupta noted that interest in fuel-efficient vehicles had already been building before the conflict, but recent developments have accelerated the trend. He added that many customers are now actively considering alternatives to conventional petrol-powered cars.
Some dealerships have also reported a surge in demand for Chinese electric vehicle models, which are often seen as more affordable entry points into EV ownership.
New entrants to the UAE market are benefiting from the shift. iCAUR, a subsidiary of Chery, said it exceeded its March retail target by 115%. Company officials attributed this to growing awareness among consumers about fuel efficiency and long-term running costs.
Hope Zhang, country director of iCAUR UAE, said buyers are taking a more measured approach when choosing vehicles. He noted that hybrid and range-extended electric models are gaining popularity as they offer a balance between sustainability and practicality.
Other major automotive groups have observed similar patterns. Geely Group, through its regional operations, reported increased interest in plug-in hybrid and fully electric vehicles. Andreas Schaaf, a senior executive at the company’s UAE partner, said the shift reflects changing consumer expectations rather than a short-term reaction to current conditions.
Meanwhile, Al-Futtaim Lexus UAE said demand for hybrid vehicles has continued to rise in recent months. Managing Director Jacques Brent said the trend points to a gradual but consistent transformation in how customers evaluate their mobility choices.
Analysts suggest that while higher fuel prices have acted as a catalyst, the broader movement toward electrification in the UAE is likely to continue beyond the current crisis, as consumers weigh long-term savings and environmental considerations alongside immediate cost pressures.
