Greedy gas cylinder distributors warned their jobs are in jeopardy

Ras Al Khaimah: The price of cooking gas cylinders has gone up by more than 10 per cent in some areas, despite the authorities issuing a new price list to combat high prices.

The Ras Al Khaimah Economic Department earlier issued the list and instructed the emirate's based distributors to adhere to it or lose their businesses.

The Economic Department is now considering opening outlets in the emirate's two gas companies to sell the cylinders direct to the public therefore bypassing gas distributors.

"This would completely destroy gas distributors' businesses in the emirate and so the department will only use it as a final resort," said Najeeb Al Shamsi, Director-General of the Economic Department.

"The public should cooperate during the next few days with the department to end this problem," he said, adding they should report extortionate prices to the department.

He said hefty fines would be imposed on distributors who breached the official price list. Al Shamsi added the department's inspectors could be contacted on 07-2271222.

Al Shamsi explained the new price list had been carefully prepared. The gas companies are to sell small cylinders to distributors for Dh25, medium size cylinders for Dh58 and large cylinders for Dh116. He added distributors would enjoy a net profit of Dh9 for each small cylinder, Dh8 for each medium cylinder and Dh14 for large cylinders.

He added if gas companies distributed the cylinders, the small sizes would be sold for Dh30, the medium sizes for Dh60 and the large sizes for Dh120.

He emphasised this would be the department's final option.

The list
Approved cost

According to the list which was forwarded to all the emirate's based distributors, the small size cylinder (25 litres) should be sold by the distributors for Dh34, the middle size (50 litres) for Dh66 and the large size cylinder (100 litres) sold for Dh130.