Business | Oil & Gas
Dubai oil retailers cut diesel price by Dho.6o
Dubai oil retailers cut diesel prices by Dh0.60 per gallon yesterday, to reflect the current downturn in international oil prices at the local pumps, oil company pump attendants told Gulf News.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 00:04 November 24, 2008
Abu Dhabi: Dubai oil retailers cut diesel prices by Dh0.60 per gallon yesterday, to reflect the current downturn in international oil prices at the local pumps, oil company pump attendants told Gulf News.
The oil retailing companies Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat lowered the selling price of diesel to Dh13.35 per gallon from Dh13.95 per gallon, which became effective from the early hours of Sunday, said an attendant at an Eppco station. A pump attendant at Emarat confirmed the new diesel price.
The latest price cut marks the oil retailers' 11th straight cut in diesel prices since July 28. Diesel was then selling at Dh19.25 a gallon, an all-time high and ever since, its price in Dubai has been going down steadily due to the declining crude and oil product prices on the international market.
Difference
With the latest price cut in Dubai, the difference between Dubai and Abu Dhabi diesel prices have narrowed down to 55.23 per cent. Abu Dhabi has kept the price of diesel steady at Dh8.60 per gallon. The oil product's price in Abu Dhabi didn't go up even when the crude prices in the international market had touched an all time high of $147.27 in July this year.
The three Dubai oil retailers buy diesel at international prices and then adjust the local prices, based on its landed cost. Diesel is widely used in the UAE as a transportation fuel with trucks as its main users. Any increase in price means greater inflationary pressures for the consumer as the fuel price rises are invariably passed on across the supply chain.
Global oil prices have fallen sharply mainly due to declining consumption in developed markets.
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