By Andy Sambidge
Emirates National Oil Company says price has been reduced to AED3.50 per litre in response to decline in global oil prices
Emirates National Oil Company (ENOC) has announced that it has reduced the price of diesel by 20 fils to AED3.50 per litre in response to the drop in global oil prices.
The revised price is applicable across the entire service station network of ENOC and EPPCO in the UAE, the company, which is owned by the government of Dubai, said in a statement.
Burhan Al Hashemi, managing director of ENOC Retail, said: "The reduction in the price of diesel reflects the decrease in oil prices in international markets over the recent weeks and following our discussions with petroleum retailers.
"It highlights our commitment to pass on price efficiencies to our customers, which in turn will benefit the entire business community. We focus on adding value to our customers and consistently seek ways to ensure that they benefit from the favourable trends in the global markets."
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".