Abu Dhabi: The Abu Dhabi National Oil Company (Adnoc) yesterday denied reports published in local newspapers with regard to a new increase in gasoline prices.
According to WAM, Adnoc in a statement stressed that no company official had spoken on the issue and that the reports were false.
"It is essential to investigate the accuracy of information and take the news from the correct source before publishing," WAM quoted Adnoc as saying.
Audio: Petrol price hikes false
Audio supplied by Radio 2
Local media reports had said that the UAE oil distribution companies were set to increase fuel costs by 20 fils a litre, shortly after Eid. In July, the UAE had announced an increase of up to 14.2 per cent in petrol prices, with the aim of gradually aligning domestic fuel prices with market rates.
Analysts and economists cautioned that if a third petrol price hike were to come about this year, it would exert greater inflationary pressures on the UAE economy as producers and suppliers would pass on the increase in transportation costs to consumers.
Positive signs
Inflation in the UAE eased for the first time in five months last month as the cost of housing remained unchanged and food prices rose at a slower pace.
The inflation rate declined to 0.9 per cent from one per cent a month earlier, the National Bureau of Statistics said recently.
Another increase in fuel prices would give traders an excuse to jack up the prices of goods and services, disproportionate to the increase in fuel costs, said economist Abdul Hamid Radwen.
Meanwhile, the average subsidy on petrol in the UAE at prevailing international prices is about Dh0.32 per litre, making a case for the country's four oil retailers to seek a third-straight increase in state-set gasoline prices, according to oil industry sources.
UAE oil retailers are losing about Dh0.40 per litre on domestic sales of Special and Super gasoline at prevailing international prices, sources at oil retailing companies told Gulf News. The loss on the E+ grade of petrol, sold only at the pumps of Adnoc Distribution, is about Dh0.15 per litre.
Yesterday, US crude oil futures prices fell sharply, dropping below $72 (Dh264.8) a barrel as continued concerns about slowing economic growth pushed equities markets and oil lower. The dollar's strength against the euro also helped to increase pressure on oil futures.
