UAE fuel prices set to rise next week

Fuel distribution companies say price hike is necessary in bid to reduce increasing losses.
By Andy Sambidge
Sat 17 Apr 2010 02:48 PM

Fuel distribution companies in the UAE said on Sunday that prices would be increased from next Wednesday.

The firms said in a statement that they have decided to raise the prices of petrol by 15 fils at various fuel stations nationwide as of April 21.

They added that the prices will be liberalised and increased gradually as part of efforts to gradually reduce increasing losses being suffered by companies, news agency WAM reported.

In January, Emirates National Oil Company (ENOC) called for an end to controls on petrol prices, saying it has been hit financially by rising costs for crude oil.

Saeed Khoory, the company's chief executive, reportedly said that the company was losing money with every sale at its 170 service stations in the UAE while the price is fixed at AED1.37 per litre.

The UAE Government should either offer direct subsidies for retailers to cover their losses or let the petrol price rise, he added.

ENOC is currently working on plans to introduce self service at its service stations, with attendants still being employed but at an extra cost to consumers.

Last Updated: GST

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