Haulage firms today braced for the third rise in the cost of diesel – amid concern they have to pass on the extra cost to their customers.
Enoc raised the cost of the fuel from Dh15.8 to Dh17 a gallon at midnight. Other companies had already raised their prices on Sunday.
The rise of Dh1.2 per gallon has made businesses that depend on diesel recalculate their budgets. Officials with Enoc said the rise was determined by market rates – and declined to rule out further increases.
Meanwhile, transport operators said they would have to factor in the increase in their products and services, adding to the inflationary spiral. The manager of Fancy Transport, who gave his name as Sunil, said: "This is the third time the price of fuel, especially diesel, has increased. I have been losing a lot of profit. I am thinking of increasing my prices.
"I have already increased my fees due to the past two increases in diesel fuel prices, but if I keep doing this I will lose customers." Khalid Hadi, marketing manager of Enoc, told Emirates Business:
"The price of diesel has increased due to the increase of world oil prices, and it has nothing to do with the inflation we are currently seeing."
"I have no idea whether there will be more increases. It ultimately depends on the world oil prices," he said.