Business | Oil & Gas
Dubai retailers reduce price of diesel by Dh0.70 per gallon
Fuel retailers in Dubai, namely Emirates National Oil Company (Enoc), Emirates Petro-leum Products Company (Eppco) and Emarat, have cut the price of diesel by Dh0.70 a gallon to reflect the prevailing international crude oil and oil product prices, pump attendants told Gulf News on Sunday.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 22:38 October 26, 2008
Abu Dhabi: Fuel retailers in Dubai, namely Emirates National Oil Company (Enoc), Emirates Petro-leum Products Company (Eppco) and Emarat, have cut the price of diesel by Dh0.70 a gallon to reflect the prevailing international crude oil and oil product prices, pump attendants told Gulf News on Sunday.
"The price of diesel is now Dh14.55 a gallon, down from Dh15.25 a gallon," said an attendant at an Emarat filling station. An attendant at an Eppco station confirmed the same.
The cut marks oil retailers' ninth cut in diesel prices and their single-biggest cut since July 28. Diesel was selling at Dh19.25 a gallon, an all-time high on that date and since then, the oil product's price in Dubai has 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 oil product.
Main users
Diesel is widely used in the UAE as a transportation fuel with trucks which 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 to the supply chain.
International oil prices have fallen sharply from a lifetime high of $147.27 a barrel on July 11, as an economic downturn and upheaval on the US financial markets, the world's big-gest oil importer, has slowed consumer demand.
There are also fears that the world's second biggest economy, Japan, may be slipping into recession. As well, the US dollar, a currency in which oil trading is mostly done, has been strengthening against the euro, which has added to the bearish sentiments that currently prevail on the world's oil markets.
Crude oil futures for December delivery in the US settled at Dh64.15 a barrel on Friday on the New York Mercantile Exchange.
On London's ICE Futures Exchange, the Brent crude oil futures for delivery during the same month settled even lower at $62.05 a barrel.
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