With petrol prices on the rise across the UAE, it’s no surprise that many people are on the lookout for ways to ease the pressure on their wallets this summer. If you’re a UAE national on a lower income, there’s actually a government scheme that could help. The UAE Inflation Allowance Scheme has been around since 2022, when it was introduced to help lower-income citizens deal with rising fuel costs. Since then, it’s grown to cover not just petrol, but also food, electricity, and water bills. Think of it as a financial safety net that kicks in when the cost of living starts climbing. Keeping reading to find out if you are eligible for UAE’s inflation allowance.
Who Can Apply?
The scheme is open to UAE nationals with permanent residency in the country. Here’s a quick breakdown of who qualifies:
- Income-based eligibility: Emirati families earning under AED 25,000 per month can apply, as long as the main beneficiary is at least 21 years old. That person, or their spouse, should either be employed and covered by a UAE social insurance or pension fund, or be retired.
- Already on support programmes? If you’re a beneficiary of the Social Support and Empowerment Programme or receiving help from the Community Development Authority in Dubai, you may also be eligible.
- Other qualifying groups include:
- Senior citizens aged 60 and above
- Widowed or divorced women aged 45 and above
- Widowed or divorced women under 45 who have custody of children under 21
One thing worth noting on the children front. Kids can only be added to a divorced parent’s allowance if that parent has legal custody.
How Does The Fuel Allowance Work?
The fuel allowance is paid out monthly and goes straight to your Emirates ID card. The amount you receive depends on the current price of Special 95 petrol:
- AED 2.10 – AED 2.85 per litre: You’ll receive AED 300 per month
- AED 2.86 – AED 3.60 per litre: You’ll receive AED 600 per month. This is the bracket that applies for April 2026, following the latest UAE Fuel Price Committee announcement
- AED 3.61 or above per litre: You’ll receive AED 900 per month
How Does The Food Allowance Work?
Food support is also paid monthly to your Emirates ID card. Here’s how it breaks down:
- The main beneficiary receives AED 500
- One Emirati wife also receives AED 500
- Each child under 21 receives AED 250, for up to four children
If the main beneficiary is an orphan or the child of someone serving a prison sentence, they’re entitled to AED 500. Any siblings under 21 in that situation can each receive AED 250. Again, up to a maximum of four siblings.
How Does The Electricity & Water Allowance Work?
This one’s a little different. Rather than being credited to your Emirates ID, the electricity and water allowance is applied directly as a deduction on your monthly utility bill.
The amount covered is either AED 400 or your actual monthly consumption (whichever is lower) for one residential unit. It’s also worth knowing that this allowance can’t be stacked with other utility support. If you’re receiving another form of financial help for utilities, only the higher value of the two will be paid out.
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