Dubai oil retailers lower diesel price

Abu Dhabi: Dubai oil retailers - Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat have lowered the price of diesel by Dh0.60 per gallon to reflect the prevailing downturn in international oil prices on the local pumps, industry sources told Gulf News on Tuesday.

Pump attendants at Dubai's Eppco and Emarat oil filling stations confirmed the news. "The price of diesel at the pumps in Dubai has come down to Dh13.95 per gallon from Dh14.55 a gallon," said a pump attendant at one Emarat station.

The price cut marks the oil retailers' tenth straight cut in diesel prices since July 28. Diesel was selling at Dh19.25 a gallon, an all-time high on that date and ever since the oil product's price in Dubai has steadily been going down due to weaker crude and oil product prices on the international markets.

The three oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the oil product. 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 due to major global economic upheavals on the US financial markets.