Adnoc will cut liquid fuel prices in Northern Emirates

The fuel used in outdoor heaters, kitchens and vehicles will now cost Dh45 for a 25lb refill in the Northern Emirates. Pawan Singh / The National

Adnoc Distribution, the retail arm of the national oil company, has lowered liquefied petroleum gas prices for the third time in two months in response to falling global prices.

The fuel used in outdoor heaters, kitchens and vehicles will now cost Dh45 for a 25lb refill in the Northern Emirates, compared with Dh50 earlier. Refills for 50lb cylinders sold on the Fujairah side of Dibba have been marked down to Dh91 from Dh100.

“This step reflects Adnoc Distribution’s commitment in meeting the needs of all customers purchasing gas cylinders in the emirates of Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah,” said Khalid Hadi, the vice president of marketing and corporate communications. “Our step also comes in response to the movement of LPG prices in global markets.”

Global prices for the fuel type, which includes propane and butane, have fallen in recent months, following a 76 per cent increase in American LPG exports last year to 300,000 barrels.

Other national companies have cut prices in response to dropping fuel costs, including Indian Oil Corp, India’s biggest fuel retailer company, which lowered the prices for cooking gas cylinders by 53.5 rupees (Dh3) last week.

Adnoc had already adjusted propane prices last month, when it lowered rates for 25lb cylinders to Dh50 from Dh54 and rates for 50lb cylinders to Dh100 from Dh105. It sells more than 3,000 subsidised gas cylinders a day in the Northern Emirates, it said yesterday.

In 2011, after months of petrol shortages, Adnoc Distribution agreed to take over Northern Emirates stations operated by Emirates National Oil Company, the Dubai retailer. Last year it also signed an agreement to take over the federal retailer Emarat’s stations in the region.

High global oil prices, coupled with low nationally mandated fuel prices, had prevented the exiting retailers from continuing to stock their stations.

Follow us on Twitter @Ind_Insights