Diesel prices hiked by up to 17%
Authorised petrol distributors in the UAE raised diesel prices by up to 17 per cent on Sunday following a surge in crude prices but said the rise is subject to revision in case oil prices dip again, the local press reported.
The government-controlled Abu Dhabi National Oil Company (Adnoc), one of the world’s largest oil firms, lifted its diesel prices in the northern emirates by 17 per cent to Dh2.76 per litre from Dh2.35, the report said.
Suppliers in the northern emirates, mainly Eppco, Enoc and Emarat boosted their diesel prices by around 5.4 per cent to Dh2.9 from Dh2.75 per litre.
“Diesel prices at more than 380 petrol stations in the northern emirates increased by between 5.4 and 17 per cent today in line with the increase in global oil prices,” the semi official daily Alittihad reported.
It quoted Enoc information director Khaled Hadi as saying the increase followed a decision by the joint pricing committee grouping representatives from suppliers.
“This increase is subject to periodical revision of diesel prices in line with the oil price movement…demand and supply are the main basis in determining diesel prices as they were cut 16 times through 2008 and 2009 following a decline in crude prices…this reflects transparency in our dealing with the price,” he said.
Sunday’s rise in the first in 2011 and the seventh in nearly 18 months and it follows a sharp rise in global prices, which have remained nearly $30 above their 2009 level because of the cold spell in the northern hemisphere, monetary easing measures in the US, strong growth in India and China and other factors.
Most analysts agree that oil prices are projected to remain strong through 2011 and could average higher than their level in 2011. Opec, which pumps just under 40 per cent of the world’s oil supply, has said it would not trim production unless oil prices sharply exceed $100 a barrel.
The UAE, which controls the world’s fifth largest proven oil reserves, already has the highest diesel price in the Arab world. At the end start of 2010, diesel prices were as low as $0.07 in Saudi Arabia and $0.19 in Qatar.
Follow Emirates 24|7 on Google News.