Abu Dhabi: Dubai-based oil retailers Emirates National Oil Company (Enoc) and Emirates Petroleum Products Company (Eppco) and Emarat have decided to increase diesel prices by 20 fils a litre effective from today, it was announced yesterday.
“The retail price of diesel will be increased across all the ENOC/EPPCO and Emarat service stations with effect from September 10, 2013. The new price will be Dh3.70/litre as against Dh3.50/litre currently,” said Enoc in a statement.
“The price revision of diesel is in line with the international price trends for crude and refined products, and has been made after all approvals concerned. ENOC/EPPCO and Emarat will explore opportunities to bring price benefits to our customers, wherever possible, based on future international trends,” the statement added.
A source at Emarat told Gulf News by telephone the new diesel prices will be effective only at their Dubai pumps. “Our pumps that were taken over by Adnoc Distribution in the Northern Emirates would continue to reflect diesel prices set by Adnoc, The diesel at Adnoc pumps are sold at subsidised rates,” he added.
The Dubai oil retailers previously had lowered diesel prices by 20 fils a litre, effective June 1, following a decline in global crude prices.
The Dubai oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the oil product. Diesel is widely used in the UAE as a transportation fuel and its prices have a direct bearing on inflation. Unlike petrol, whose prices are state-set, diesel prices are deregulated for Dubai oil marketing companies, which means the product’s prices can move up or down, based on the global price trends.
“Our margins will reduce, by about two to three per cent due to the increase in diesel prices. We are not planning to increase freight costs, as of now, but if there are going to be more increases in diesel prices, we have to really re-think our options,” Raza ur Rahman, owner of Dubai-based Al Zamil Transport told Gulf News.
