Business | Oil & Gas

UAE petrol prices to rise for third time in a year after Eid

Next price hike on petrol prices in UAE will include diesel, Special and E-plus fuel, according to sources from Adnoc

  • By Abdulla Rasheed, Abu Dhabi Editor
  • Published: 14:39 August 21, 2010

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  • Image Credit: Bloomberg
  • According to Adnoc sources, petrol litre prices will generally rise by 20 fils. Picture for illustrative purpose only.
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Abu Dhabi: Petrol prices in the UAE are set to rise for the third time this year, a source in oil company, Adnoc, has told Gulf News.

A number of different types of petrol including Special, E-plus and Diesel, will be affected by the increase, which the source said will take place after the Eid holiday.

The rise in fuel costs is in line with a report by Gulf News three months ago which stated that a rise in petrol prices would take place in three stages, before the end of the year 2010. This is the third such rise.

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A senior official at oil company Adnoc said it did not want to impose additional increases so as not to not provoke people who "already suffer from high and unreasonable prices" after the second increase of last month.

However, he added that the company is subject to significant pressure from suppliers such as Enoc, Eppco and others who are requesting that they too increase their prices immediately.

The source said that in private meetings of the boards of directors of fuel suppliers, it emerged that they feared significant losses if fuel prices remained at the current levels.

The increase is likely to be 20 fils per litre. This means that the cost of Special fuel will increase from Dh1.72 to Dh1.92 per litre, E-plus will increase from Dh1.61 to Dh1.81 and Diesel will increase from Dh2.35 to Dh2.55 per litre.

All three fuel companies are lobbying for petrol price to reach up to Dh2.50 per litre by the end of the year. However, the decision to increase prices further will depend on the consumers' reaction to the third increase.

The respective companies have refused to comment on the issue.

Gulf News surveyed a number of Emiratis who expressed extreme dissatisfaction with the rise in fuel costs, which one described as "dramatic". They all pointed out that the price of oil in the UAE is now double what it is in any other country in the GCC.

"I travelled with my friends to Saudi Arabia last week and filled the tank of a car with a six-cylinder engine for about Dh 85, the same [amount] would have cost about Dh155 in the UAE," Khalid Al Hammadi said.

Adel Ahmad was equally unimpressed with the increase. "I travelled to Qatar via Saudi Arabia and filled my eight-cylinder four wheel drive for Dh120, which would be about Dh210 in the UAE," he said.

Khalid Ahmad Al Hammadi went to the United States on vacation in July. "I rented a six cylinder caravan and filled the tank for Dh145, which would be about Dh200 in the UAE," he told Gulf News.

Comments (15)

  1. Added 15:15 August 22, 2010

    I feel that increase in Fuel Prices are to Off-set the losses of Fuel Supply / Distribution companies, whereas the need is to look into the business model of these companies and find out a way to evolve according to the changing economic conditions.

    Ishfaq Ali, Dubai, United Arab Emirates

  2. Added 15:07 August 22, 2010

    I don't think anyone has a choice at what price we need to buy petrol. But I really do not understand the logic of oil companies operating in oil producing countries by buying oil from third parties and selling to public. It's like buying ice from Sahara and selling in Siberian winter at Sahara desert ice plant costs. So, who who should be punished? Should these oil companies doing nonviable business or general public who don't have a choice. The cascading effects of these rise can put significant pressure on already shaken up regional economy, in addition to fragile middle class home budget

    P.H NEJIMON, Abu Dhabi, United Arab Emirates

  3. Added 14:43 August 22, 2010

    Every where in the world fuel prices are going down. Why its upward trend in UAE. It would reflect negatively on all aspects of living i.e price of food, rents, electricity would go up.... I request authorities to reconsider their decsion....

    Chaudhary, Dubai, United Arab Emirates

  4. Added 14:39 August 22, 2010

    i am gasoline boy,and my salary was 1800dhs since last two years...not just the petrol will increase but the salary of the staff also whos suffering heat and cold weather...petrol boy is the front,we call collect all sales,,sometimes we pay from our pocket for short in end shift...1800dhs including all...750dhs for sharing accommodation,,150 for my transportation,,200 for foods and 700 for my family in philippines,No more in my wallet.....anyone can survive this? Sorry boss am just telling the truth...please gulf news post my comment,thank you.

    hashim al hamid, abu dhabi, Philippines

  5. Added 14:29 August 22, 2010

    Mid income peoples will be effececting most. This will increase prices of all other things.

    TAHIR, abu dhabi, United Arab Emirates

  6. Added 14:24 August 22, 2010

    I have just arrived back from Saudi Arabia after Umrah, and i must say that the fuel price is sky rockting high in UAE My 4x4 fills here by AED 210 after the recent increase in price where as in Suadi Arabia it used to cost me 70-80 Riyals. Infact the cost of living is much lower compared to UAE, Rents, Food, Travel. I think i have to make up mind for AED 300+ per full tank after the rise before end of 2010 or go for alternate smaller vehicle.

    Mohammad Elyas, AbuDhabi, United Arab Emirates

  7. Added 12:48 August 22, 2010

    my home land it just 110 km from dubai called al buraimi where i can fill up my v8 suv for just 140dh whenevr i go visit my familiy here in dubai where i stay i pay 230dh for a full tank at this moment before the next fuel rise in dubai.

    al balushi, dubai, United Arab Emirates

  8. Added 12:41 August 22, 2010

    I think Whoever is advising on raising the fuel prices in this country is making a big mistake. The main attraction for big industries to come and invest in this country is low cost energy. The big investment made in building housing and infrastructure will prove to be a big waste and loss, if big manufactures and industrial business dont move in. whoever is thinking now about investing in the UAE might think twice because of this.

    A. Rahabi, abu dhabi, United States

  9. Added 12:34 August 22, 2010

    When UAE suddenly changed unit of measurement from gallon to liter, I felt that price would be increased and it is just a try to mask the increase since it will look too much on gallon. But may be they don't understand people here look at the cost of full tank. The full tank for my car was for AED120 till last year for special, now it is AED140 for Eplus. I dont understand the reason behind the price hike.

    Adnan Shabbir, Sharjah, United Arab Emirates

  10. Added 12:12 August 22, 2010

    This was predicted very early when it was announced that the fuel will now be sold in liters not in gallons. Always, when some thing is made to move in smaller units, usuallymean that its price will be increased. This is rather quite sad move from the authorities. This will be third time that fuel prices will be increased. Evey one knows that fuel in international markets has dropped in value around $80 but when it was $144 had the prices in UAE came down...? Why it is only effecting UAE in GCC?

    Ali Asghar, Sharjah, United Arab Emirates

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