An uncommon policy on diesel

In many Western countries the price of diesel oil for vehicles is about the same as that for petrol (gas) or frequently it is significantly less to encourage its wider use. For this reason it is not uncommon to see private vehicles - saloon cars and such like - powered by diesel engines. Similarly most commercial vehicles run on diesel, thus ensuring the price for the inland transport of goods remains competitive.

However, for some curious reason, in the UAE the price of diesel is nearly three times that of petrol, which may be due to the strict price controls imposed on petrol and possibly account for the absence of diesel powered private cars in the UAE. If diesel is not subject to price constraints, then distributors will sell oil products at prices which are deemed to be reasonable but profitable.

A disparity in pricing structure has arisen not only between petrol and diesel, but also between Abu Dhabi based retailers and Dubai based ones, such that the difference is now approximately 70 per cent - Abu Dhabi being cheaper. This is extremely significant saving to hauliers whose vehicles use diesel, and will help keep haulage costs down. But the price difference means Abu Dhabi pumps have queues, while Dubai ones get no customers.