Dubai: Dubai's Emirates National Oil Company (Enoc) yesterday raised the price of diesel by six per cent to Dh10.60 per gallon, the company's fourth price increase in less than 40 days.
On the previous three occasions the state-run company, which operates Enoc and Eppco filling stations, increased diesel prices by 20 fils each time.
The latest price hike makes diesel 24 per cent costlier in Dubai than in Abu Dhabi.
Diesel was available for Dh8.60 per gallon at the filling stations operated by Abu Dhabi National Oil Company, which has kept its price unchanged despite the distributors in Dubai regularly hiking fuel prices.
Emirates General Petroleum Corp (Emarat) was still selling diesel at Dh9.99 per gallon yesterday, but the company has matched Enoc prices in the past with its own price revisions.
The Ministry of Economy said recently a 31.5 per cent increase in the prices of petroleum products in 2005 fuelled last year's inflation, which it estimated at 9.3 per cent.
Transport companies said the steep price hike will put an extra financial burden on them.
"Diesel prices keep going up but we cannot increase our charges so frequently," said a manager of Belhasa Bus Rental company, which operates a fleet of 70 vehicles.
Diesel consumers may also be encouraged to source cheaper fuel from Adnoc outlets.
"We are instructing our drivers to get diesel from Adnoc stations if they are in Abu Dhabi or Sharjah," said Kamran Ahmad, manager of another transport company based in Dubai.
An Enoc spokesperson told Gulf News one reason for the latest price revision was the recent introduction of low-sulphur diesel by the company and producing that fuel "is a costlier process with additional long-term investment
required."
Have your say
How do you think this is going to translate to the consumer? Do you expect a rise in the prices of local produce, as transportation costs increase? Tell us at letter2editor@gulfnews.com or fill in the form below to send your comments.
Your comments
When we get this low sulphur diesel from the stations, car manufacturers can then start to import those low emission, low consumption high-tech diesel cars into UAE, which will not only improve air quality, but also save us money.
Pete
Dubai,UAE
Posted: July 30, 2007, 10:40
This rising fuel price is one of the major factors contributing to inflation. The government should take stricter measures to ensure that the average consumer or trader does not get pinched in the pocket for things that can be controlled. The reason why inflation in other GCC countries is more under control is because of a more controlled fuel pricing system.
Ahmar
Abu Dhabi,UAE
Posted: July 30, 2007, 08:27
