2025 price hikes: Salik, parking, sewerage fees, insurance

As the UAE braces for cost adjustments in various sectors, residents are already exploring ways to manage their expenses effectively.

Here’s a concise list of key price hikes this year.

New Salik toll pricing

Salik’s dynamic pricing system is set to begin at the end of  January.

Motorists will pay Dh6 during peak hours (6–10am, 4–8pm), Dh4 at other times, and free from 1am to 6am.

This marks Salik’s first toll revision since 2007, expected to generate Dh60m to Dh110m annually.

Alcohol sales tax returns

Dubai is reinstating its 30 per cent municipality tax on alcoholic beverages starting January 1.

This follows a two-year suspension aimed at boosting tourism and retail sectors.

Increased sewerage tariffs

Sewerage fees will increase gradually over three years:

1. 2025: 1.5 fils per gallon
2. 2026: 2 fils per gallon
3. 2027: 2.8 fils per gallon

This is the first update in a decade, aimed at enhancing water conservation and infrastructure.

Higher insurance premiums

Health and motor insurance premiums are set to rise starting January.

Factors include increased healthcare costs, inflation, and vehicle repair expenses. Health insurance is expected to see steeper hikes.

New EV charging tariffs

UAEV, the UAE’s government-owned EV charging network, will charge Dh1.20 per kWh for DC chargers and Dh0.70 per kWh for AC chargers, plus VAT, starting in January.

UAEV will also launch an app to locate charging stations and enable seamless payments.

Dubai parking fees

Effective from March, premium parking areas will cost Dh6 per hour during peak times (8–10 am, 4–8 pm).

Non-peak hours for premium parking will be Dh4 per hour. Standard parking fees remain Dh4 per hour from 8 am to 10 pm.

Event parking zones near venues like the Dubai World Trade Centre will charge Dh25 per hour during major events.

Sharjah’s Al Dhaid City will also implement paid parking starting January 1.

Read: UAE set to roll out 15% tax for global corporate giants

Government issues decrees to regulate prices of essential goods

In other news, The UAE Ministry of Economy has implemented a new pricing policy for nine categories of essential consumer goods, aiming to enhance market transparency and protect consumers.

The policy, guided by three ministerial decrees, introduces measures to regulate price increases and promote fair competition, ensuring stability across the nation’s markets.

The policy regulates the prices of nine essential goods: cooking oil, eggs, dairy, rice, sugar, poultry, legumes, bread, and wheat.

Retailers and suppliers must obtain prior approval from the Ministry before increasing prices.

The measures aim to prevent sudden price fluctuations caused by external economic factors, maintain product quality, and curb monopolistic practices. By balancing supply and demand, the policy seeks to foster fair competition among suppliers, retailers, and digital merchants.

Key provisions under the new decrees

Price monitoring: Ministerial Decision No 246 of 2024 mandates a dedicated team to monitor price changes and review price-increase requests. The team will also handle consumer complaints related to pricing violations. The decree stipulates that price hikes can only occur six months apart, subject to ministry approval.

Transparency in unit pricing: Ministerial Decision No 245 of 2024 requires large retailers and online merchants to display unit prices clearly, helping consumers make informed purchasing decisions. Non-compliance could result in penalties or corrective actions.

Code of conduct: Ministerial Decision No 247 of 2024 establishes ethical guidelines for contractual relationships between suppliers and retailers. The code aims to ensure transparency and fairness in the consumer goods sector.

The ministry emphasised its supervisory role, empowering consumers to report violations. It also reiterated its dedication to fostering a culture of sustainable consumption, urging collaboration among stakeholders to ensure the policy’s success.