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High diesel prices hurt Dubai's transport firms
Dubai's transport companies are feeling the heat of high diesel prices at the fuel stations in the emirate as they find it difficult to pass on the rising fuel cost to their customers.
- By Shakir Husain, Staff Reporter
- Published: 00:45 May 1, 2008
Dubai: Dubai's transport companies are feeling the heat of high diesel prices at the fuel stations in the emirate as they find it difficult to pass on the rising fuel cost to their customers.
The price of diesel at the pumps operated by Dubai retailers Enoc and Emarat is 80 per cent higher than the price charged by Abu Dhabi National Oil Company (Adnoc) service stations in Abu Dhabi and the Northern Emirates.
"The high price of diesel has increased the cost pressure on us," said Mohammad Sadiq Abdullah, manager of a transport company that operates a fleet of 40 heavy trucks, and transports goods between the UAE and other GCC countries.
He said fuel stations in Saudi Arabia, where diesel is available at a fraction of the price anywhere in the UAE, have become strict with UAE drivers if they try to get extra fuel. Some drivers travelling on long-distance routes use two tanks on their vehicles, but attendants at Saudi filling stations often refuse to fill both the tanks.
The current rate of diesel per gallon in Dubai is Dh15.30 after last Wednesday's Dh1 hike, while Adnoc sells it at Dh8.60 per gallon.
The fuel is cheaper in Oman also, and trucks plying between the UAE and the Sultanate try to fill their tanks there, a trucker said.
"The cost of diesel at Enoc service stations throughout the UAE reflects international prices, which have increased significantly in recent months," Enoc Group brand and marketing manager Khalid Hadi told Gulf News when asked about the company's pricing policy.
"We have long-term contracts with our clients, so we cannot charge them more when diesel prices increase," said a manager of a Dubai-based transport company. Similar problems are being faced by freight companies that outsource transport services.
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