Abu Dhabi: The UAE's oil marketing companies have decided to raise petrol prices by Dh0.20 a litre effective Thursday, sources told Gulf News.
"With effect from 12 midnight [on] Thursday 15th of July, the retail pump price of Mogas will be increased by Dh0.20 per litre. The price change must be done at 11:50pm on 14th of July," Emirates National Oil Company (Enoc] said in a note circulated across its network of fuel outlets and pumps of Emirates Petroleum Products Company (Eppco)
In a statement issued through WAM, oil distribution firms said the price increase is part of a gradual liberalisation of prices.
"The announced rise comes within efforts to gradually mitigate accumulated and growing losses these companies are sustaining due to continuous surge in cost of the product," said the statement.
Petrol prices currently range from Dh1.41 to Dh1.63 per litre.
"It is no surprise. The UAE has previously said that it plans to gradually increase retail prices of petrol and diesel to more realistic levels. All Gulf countries are looking at it, as they have no option," said Kate Dourian, Middle East Editor of Platts, a global energy information provider.
"The domestic oil product consumption of Gulf countries has been increasing rapidly in recent years and unless they rethink their policy on state-controlled fuel prices, they will have a lot less oil to export."