Oil price hike not to affect essential items
Wednesday petrol prices in the UAE will increase to Dh1.52 per litre,
Dubai: A 11 per cent increase in petrol prices may not have much impact on prices of essential items, analysts say.
Trucks run on diesel. So the impact of the increase in petrol prices could be limited to the saloon cars and sports utility vehicles.
"The cost of fuel is way below the inflation rate," said Kate Dourian, Middle East Editor at Platts, an information provider on energy and metals, adding that the price hike is unlikely to have a big impact on transportation.
She said the retail prices here are way too low compared to international prices, so the consumption is much higher compared to other parts of the world.
On Wednesday, petrol prices in the UAE will increase to Dh1.52 per litre, a jump of Dh0.15 from the current price of Dh1.37 per litre.
WAM reported on Saturday that the price rise was to "reduce the accumulated and increasing losses incurred by companies, resulting from the continuous high cost of the product."
