Dubai-based oil retailers – Emirates General Petroleum Corporation (Emarat), Emirates National Oil Company (Enoc) and Emirates Petrochemical Products Company (Eppco) – will drop their diesel prices at their retail outlets by Dh0.50 per gallon starting tomorrow.
The new reduction is the 14th of its kind to take place when international prices for crude oil have been surging since July 11 when they touched $147.27 (Dh541) on the New York Mercantile Exchange. The new measure will bring the gallon of diesel from Dh11.35, where it stands now, to Dh 10.85.
Two of the 14 reductions had their highest amount of Dh1 per gallon since summer 2008, whereas other cuts ranged between Dh0.35 to Dh0.75 per gallon.
"With the way prices for crude oil have been dropping, we decided to reduce the prices at the pump by Dh0.50," said Khaled Hadi, an Enoc spokesman.
Hadi has called on all businesses, which have been blaming high diesel prices for raising their cost and fees to end users, to stop making excuses and it is time for them to reduce their prices."
"This is the second Dh1-drop in prices for diesel since July," he added.
The drop will take effect at Emarat gas stations since the two retailers have agreed mutually on setting price changes in their outlets in Dubai and the Northern Emirates. Emarat, Enoc and Eppco calculate and set their prices according the Brent crude oil index that has been fluctuating between $35 and $45. The Brent crude oil index closed at $46.57 a barrel; meanwhile, light crude closed at $35.35 a barrel at the in New York on Friday.
Diesel prices at Enoc, Eppco and Emarat had reached their peak of Dh19.25 per gallon in July, but have been dropping since then.
Meanwhile, diesel prices at the pump have been stable at Dh8.60 per gallon at Abu Dhabi National Oil Company (Adnoc) outlets in Abu Dhabi and the Northern Emirates.
Reductions in international prices for crude oil have caused prices for cylinders of Liquefied Petroleum Gas (LPG), which is used for cooking, to drop in Dubai and the Northern Emirates by an average of 10 per cent on November 6, 2008, and second time for an average drop of nine per cent on January03 since prices, which are set by Emarat Gas and Emirates Gas, had reached their peak in June 2008.