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Oil retailers in Dubai lower diesel prices again
Easing of international crude prices helps curb costs of the deregulated hydrocarbon product to Dh15.75 per gallon.
- By Himendra Mohan Kumar, Staff Reporter
- Published: 22:15 September 21, 2008
Abu Dhab:i Dubai oil retailers Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat have cut the price of diesel at the pumps by 50 fils a gallon for a seventh time in less than two months, following a steep decline in global oil prices, sources told Gulf News on Sunday.
"The price of diesel at the pumps in Dubai is now Dh15.75 per gallon, down from Dh16.25 a gallon," said one of the sources, who works for Emarat.
Pump attendants at Dubai's oil filling stations confirmed the news.
Gulf News had reported last week that the Dubai oil retailers were planning another cut in diesel prices, a deregulated oil product.
The three oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the oil product.
The successive price cuts, 50 fils per gallon each time, were announced by the oil retailers following a downward trend in international crude oil and oil product prices since mid-July.
Diesel prices in Dubai have been coming down from an all time high of Dh19.25 a gallon, a price level last seen on July 28.
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.
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.
Fears
There are also fears 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.
On the New York Mercantile Exchange on Friday, crude oil futures for October delivery in the US settled below $104 per barrel. In comparison, Brent crude futures' most recent recorded settlement was at $97.98 a barrel on the ICE Futures Exchange in London.
Diesel is widely used in the UAE as a transportation fuel, with trucks that carry goods as main users. Any increase in the price means greater inflationary pressures for the consumer as the fuel price rises are invariably passed on across the supply chain.
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