Business | Oil & Gas
Dubai retailers cut diesel price for the sixth time
Dubai oil retailers - Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat cut their diesel price at the pumps by 50 fils per gallon as of Monday, marking their sixth straight cut in prices in a little more than a month, sources said.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 23:54 September 1, 2008
Abu Dhabi: Dubai oil retailers - Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat cut their diesel price at the pumps by 50 fils per gallon as of Monday, marking their sixth straight cut in prices in a little more than a month, sources said.
"The price of diesel is now Dh16.25 per gallon, down from Dh16.75 per gallon," one of the oil company sources told Gulf News. Pump attendants at Dubai's filling stations confirmed the news.
Gulf News had accurately reported the extent of the diesel price cut being planned by the oil companies and the date from which the new price would come into effect. "We want to pass on the benefit of lower fuel prices to our customers," a spokesman for Enoc and Eppco said previously.
The three Dubai oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the product.
The price cuts were announced by the oil retailers following a significant fall in international crude oil and product prices since mid-July.
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.
Price gap
With the latest price cut, the price of diesel in Dubai has come down 18.46 per cent or Dh3 since July 28 when it was selling at a record high of Dh19.25 a gallon.
The diesel price gap in Dubai and Abu Dhabi has also shrunk further - to 88.95 per cent, from to 94.77 per cent.
International oil prices have fallen sharply from a lifetime high of $147.27 a barrel on July 11, as an economic downturn in the US, the world's biggest oil importer, has slowed consumer demand.
There are also fears that the world's second biggest economy, Japan, may be slipping into recession.
In addition, the US dollar, the currency in which oil trading is conducted, has been strengthening against the euro, which has contributed to the bearish sentiments that currently prevail on the world oil markets.
On the New York Mercantile Exchange on Monday, crude oil futures for October delivery in the US were hovering well below $117 per barrel in early trade.
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