A burgeoning black market in diesel has shifted to remote areas along the Abu Dhabi border, Emirates Business has learned.
Recent rises in diesel prices in Dubai have given rise to an illicit trade involving hundreds of truck drivers and racketeers benefiting from cheaper prices over the border. The black market began after last month's decision by Dubai-based retail fuel suppliers to increase diesel prices for the eighth time in nearly a year which widened the price gap with Abu Dhabi by more than Dh10 per gallon.
Limits placed on the amount of diesel that can be sold in one visit – and often at specific times – to avoid tailbacks and congestion at filling stations has led many drivers to travel hundreds of kilometres every day.
They are travelling to areas such as Ruwais and Traif on the edge of Abu Dhabi to fill their tanks with cheap diesel.
The fuel is then sold at higher prices to Abu Dhabi-based unauthorised dealers, who in turn market them in Dubai. The drivers take the daily trip of more than 200km because they can fill up their tanks, while they are allowed only a maximum Dh200 worth of diesel a day in the capital and nearby areas under a strict gas oil rationing system introduced by Adnoc last week to ease congestion at its filling stations.
Truck drivers who are involved in such a business said they fill up their tanks in Ruwais for between Dh400 and Dh500, getting around 50 gallons at nearly Dh8.6 per gallon.
They then return to Abu Dhabi, where they sell the diesel to racketeers in the industrial city of Musaffah for around Dh12-Dh14 per gallon, making a profit of between Dh200 and Dh300.