The gulf nation has announced plans to withdraw from the Organization of Petroleum Exporting Countries from the start of May.
OPEC is a group of oil-producing nations which coordinate production levels to maximise profits. It controls almost 80 per cent of the world's proven reserves and produces around 40 per cent of global oil supply.
The UAE has long chafed at OPEC's limits on its production, wanting to export much more oil to the world.
The country's decision to quit the grouping would likely lead to cheaper petrol, but not until the Strait of Hormuz reopens, NRMA spokesman Peter Khoury told AAP.
"This frees (the UAE) up to increase their production. They have significant reserves and can do so," he said.
"That's a positive thing for Australian drivers, because it will put downward pressure on global oil prices in the longer term."
Assistant Treasurer Daniel Mulino said the federal government was closely monitoring the situation but warned there were many moving parts to global oil supplies.
"It's too early to tell how this particular measure will play out," he told ABC Radio on Wednesday.
"What the Australian government's clearly going to be supportive of is anything that improves the stability of supply."
The revelations came as the coalition defended its new energy policy which would force fuel companies to stockpile more petrol and diesel, while pushing prices at the bowser up by around one cent a litre.
"We think that's a reasonable premium to get another 30 days of storage," Nationals Leader Matt Canavan told Nine's Today program.
Senator Canavan said the coalition would also push to build a new refinery near Gladstone in Queensland to bolster Australia's fuel security.
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