By Andy Sambidge
Emirates National Oil Company reduces price to $0.89 per litre; second cut in two months
Emirates National Oil Company (ENOC) on Wednesday announced that it has reduced the price of diesel by 20 fils to AED3.30 ($0.89) per litre in response to the drop in global oil prices.
The revised price, the second in a matter of two months, 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 is in line with the international price trends for crude and refined products and comes after a thorough evaluation of the market and discussions with petroleum retailers.
"At ENOC, we are consistently seeking opportunities to bring price benefits and provide added value to our customers. This move will benefit the entire community and underlines our commitment to strengthening the competitiveness of the UAE and the welfare of the people," he added.
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 AED2.7 billion 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".
I wish petrol got cheaper so we could buy bigger cars