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 outlets by Dh0.75 per gallon starting from tomorrow.
The new reduction is the 15th of its kind to take place when international prices for crude oil have been surging since July 11 where they reached $147.27 on the New York Mercantile Exchange.
The new measure will bring the gallon of diesel from Dh10.85 to Dh10.10.
Two of the 15 reductions had their highest of Dh1 per gallon since summer 2008, where other reductions ranged between Dh0.35 to Dh0.75 per gallon.
"With the way prices for crude oil have been dropping even for the Brent crude oil index, we realised we can go for another reduction, we decided to reduce the prices at the pump by Dh0.75," said Khalid Hadi, Enoc Group Brand and Marketing Manager. "As we continuously have been saying that the drop in prices of crude oil worldwide will make us continuously evaluate the market and reduce prices."
The drop will take effect at Emarat gas stations since the two retailers agree 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 in the $40 range, while the New York index has plummeted into the mid $30 range at earlier tradings.
But the Brent index ended last week reaching a low of $37.51 and closed Monday at $36.68 a barrel – a low that is narrowing its gap with the New York index that closed on Monday at $37.51.
Replying to a question from Emirates Business on whether the continuous drop in prices for crude oil would led to drop in LPG prices, he said: "We had two price drops of LPG since last June by an average of 10 per cent, but we do not know yet and natural gas is different from diesel."
Diesel prices at Enoc, Eppco and Emarat had reached their peak of Dh19.25 per gallon in July, but have been dropping since then.