Business | Oil & Gas
Diesel costs set to come down in Dubai again
Dubai oil retailers Enoc, Eppco and Emarat are cutting the price of diesel by 50 fils a gallon at the pumps, oil company sources tell Gulf News.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:53 October 10, 2008
- The price cut, when effective, will mark the oil retailers' eighth straight cut in diesel prices since July 28.
- Image Credit: Gulf News Archive
Abu Dhabi: Dubai oil retailers - Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat - have decided to cut the price of diesel by 50 fils a gallon at the pumps effective from October 12, oil company sources told Gulf News on Friday.
Enoc and Eppco Group Brand and Marketing Manager, Khalid Hadi, confirmed the news on behalf of the two companies. A spokesman for Emarat wasn't immediately available for comment.
"As of October 12, the price of diesel will be reduced to Dh15.25 a gallon, down from Dh15.75 a gallon, a reduction of 50 fils per gallon," said Hadi.
The cut, when effective, will mark the oil retailers' eighth straight cut in diesel prices since July 28. Diesel was selling at Dh19.25 a gallon, an all-time high, on that date. Since then, prices in Dubai have steadily been going down due to weaker crude and oil product prices on the international market.
The three oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the product. Diesel is widely used in the UAE as a transportation fuel with trucks that carry goods as main users. Any increase in the price of the fuel means greater inflationary pressures for the consumer as the fuel price rises are invariably passed on across the supply chain.
"We expect transporters to lower freight charges as the main component of their cost, diesel, will have come down by Dh4 a gallon from its peak price, as of Sunday," said Hadi.
International oil prices have fallen sharply from a lifetime high of $147.27 a barrel on July 11, as an economic downturn and upheavals on the financial markets in the US, the world's biggest oil importer, has slowed consumer demand. There are also fears the world's second-biggest economy, Japan, may be slipping into recession. In addition, the US dollar, the standard currency for oil trade, has been strengthening against the euro.
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