Dubai's fuel retailers have upped the price for their diesel by 20 fils a litre.
Emirates National Oil Company (Enoc), owned by the Dubai Government, and its subsidiary Emirates Petroleum Products Company (Eppco) announced the price rise from Dh3.50 to Dh3.70 yesterday.
Emarat, a Dubai-based fuel retailer established by the federal government, is raising prices by the same amount.
"The price revision of diesel is in line with the international price trends for crude and refined products," the companies said.
The price rise widens the discrepancy between the cost of diesel sold at Enoc, Eppco and Emarat, and fuel sold at Abu Dhabi National Oil Company (Adnoc) stations outside of Dubai.
Adnoc sells diesel for Dh3.25 a litre in Abu Dhabi and Dh3.30 a litre in the Northern Emirates.
Whereas petrol is capped at Dh1.72 a litre, as federal legislation mandates subsidised prices, diesel is not subject to the same restrictions.
Dubai's retailers are suffering losses from the subsidies, as the emirate relies on imported oil and gas. Adnoc, by contrast, can draw on Abu Dhabi's vast hydrocarbon production.
Petrol is a derived from oil, while diesel is based on gassy condensate. Most cars in the UAE run on petrol, with transport fleets often powered by diesel.
The Abu Dhabi company has been building up its distribution network in the Northern Emirates after Enoc restricted its operations to Dubai to narrow its losses.
Adnoc announced it was scouting for locations for an initial 10 petrol stations in Dubai, where it will sell diesel at a significant discount to Enoc and Emarat stations. Further stations in Dubai are likely to follow, the company said at the time.