By Andy Sambidge
Retailers to reverse price cut announced three months ago; litre of diesel to increase by 20 fils
The retail price of diesel will rise by 20 fils per litre from Tuesday across all ENOC/EPPCO and Emarat service stations, it has been announced.
The price increase will reverse a 20 fils price cut announced by ENOC in June and will increase the price of diesel to AED3.70 per litre from AED3.50 per litre.
According to the petroleum retailers, the price revision of diesel is "in line with the international price trends for crude and refined products".
A statement added that ENOC/EPPCO and Emarat will "explore opportunities to bring price benefits to our customers, wherever possible, based on future international trends".
Unlike neighbouring Abu Dhabi, the capital of the UAE, Dubai does not have significant oil reserves. Although petrol prices are capped across the country, diesel prices are not.
In 2011 ENOC said it faced a loss of AED2.7bn ($735m) to sell petrol at the subsidised rate after buying it at international prices and said the situation was "clearly not sustainable or viable for the company".
World Bank data showed that in 2012, the average pump price of diesel in the United States was $1.05 a litre and in China it was $1.28 a litre.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.