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U.A.E-Diesel price to go up by 15 fils
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Print It is the seventh price hike since prices of commodity started rising in June 2009
Dubai: The cost of diesel in Dubai and the northern emirates will rise again next week as oil prices close in on $100 a barrel for the first time in two years.
From next Sunday [January 16], the cost of diesel at all Emarat, Enoc and Eppco stations will rise by 15 fils, making it the seventh price hike since prices of the commodity started rising in June 2009.
Khalid Hadi, Brand and Corporate Communications Director at ENOC, said: "Effective from January 16, the price of diesel will increase from Dh2.75 per litre to Dh2.90 per litre, an increase of 15 fils.
“The main reason for this increase is the continuing fluctuation of oil prices in the international market, which in turn has an impact on the local UAE market.
“This is the seventh increase in the cost of diesel since June 8, 2009 and will apply to all gasoline stations across Dubai and the northern emirates. We hope oil prices will come down in the near future as that will in turn have a good impact on the local market.”
The announcement comes as oil prices close in on the psychologically important $100 a barrel for the first time in over two years. Brent oil traded at over $98 a barrel on Thursday as global demand for the commodity continues to rise.
Dr Giyas Gokkent, Group Chief Economist at National Bank of Abu Dhabi, said: "If you look at world energy prices there has been a continuous upward trend in recent months. In the GCC, prices have maybe been subsidised at lower levels compared to international rates.
“However, because of increasing fiscal demands on various economies in the region, there is a growing trend towards international prices to some degree. We have been pencilling in assumptions for higher inflation rates as they will ultimately edge up as a result of these price increases.”
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