Enoc/Eppco cut diesel price by 20 fils a litre

Diesel prices across all Emirates National Oil Company (Enoc) and Eppco fuel stations will be reduced by 20 fils per litre with effect from midnight today (Wednesday).

The fuel marketing company has decided to reduce the retail price of diesel in tune with the fall in international oil prices.

The new price will be Dh3.30 per litre compared to Dh3.50.

From a peak price of $115 per barrel in June 2014, international crude oil price has fallen to $63.38 on Wednesday.

Emarat, which recently reduce its diesel price from Dh3.70 to Dh3.50, is likely to cut its price further soon.

Burhan Al Hashemi, Managing Director of ENOC Retail, said: “The reduction in the price of diesel is in line with the international price trends for crude and refined products and comes after a thorough evaluation of the market and discussions with petroleum retailers."

While all the leading fuel marketing companies in the UAE were keeping their fingers crossed and delayed a decision to cut the retail diesel price in tune with the falling international oil price, Adnoc Distribution had reduced diesel prices in the Northern Emirates by 40 fils from Dh3.45 per litre to Dh 3.05. However, the price of petrol remains the same. So is the price of diesel in Abu Dhabi which is only Dh2.35 per litre. There is still a price difference between Adnoc and other fuel marketing companies.

The reduction in the price of diesel is a relief for heavy transport companies who are the main buyers of diesel. The fall in international oil prices has been a bonanza for fuel marketing firms, some of which were complaining of heavy losses due to lack of government subsidy.

“At the current oil price, fuel marketing companies can make a profit even without a subsidy from the government. It is a good decision to reduce the diesel price, even though it came after a long gap,” said a customer.

“It is a welcome step to reduce diesel price. After oil price fell by 50 per cent, fuel marketing companies continued to charge high price from customers. They made a fortune in a few months and now customers will get some benefit. It will reduce the cost of transport in the UAE,” said a transport company manager.
 

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