Enoc matches Emarat’s diesel price of Dh3.10 per litre

Fuel retailers pass on the benefits of lower oil prices to consumers.
Emarat is lowering the price of diesel. Andrew Henderson / The National
Emarat is lowering the price of diesel. Andrew Henderson / The National

Enoc this morning matched Emarat’s diesel price cut.

The fuel will now retail at Dh3.10 per litre from noon onwards across Enoc and Eppco service stations, down 6 per cent from Dh3.30 previously.

Talib Al Saleh, the acting managing director of Enoc Retail, said: “The international prices of both oil and diesel have continued on a downtrend, which is reflected in our revised price of diesel. The further price reduction underlines our commitment to bring value to our customers by passing on cost efficiencies.”

The same sentiment was echoed by Emarat on Monday.

“The recent decline in international prices has provided us an ideal window of opportunity to pass on the price benefits to diesel users,” said Hussain Kazim, a spokesman at Emarat. “The price decrease will have a positive impact on the overall economy, given the vital role that diesel plays in the logistics sector.”

It would also benefit the manufacturing sector and other supply companies with large fleets that use diesel, he added.

This is Emarat’s second price cut this month. The previous one took place on December 18.

“A recovery in oil prices is hard to expect when there’s a supply glut, while demand isn’t catching up,” said Kang Yoo Jin, a commodities analyst at Woori Investment & Securities in Seoul.

Brent crude this morning hit a five and a half year low of close to $57 a barrle.

Retailers had also dropped prices recently. Enoc cut its diesel price by 20 fils on December 17, with the fuel available at Dh3.30 per litre.

In early November, Adnoc reduced the price of diesel by 40 fils a litre to Dh3.05 from Dh3.45.

The drop in global oil prices has also had a spillover effect on the prices of other products.

Adnoc Distribution this month dropped the price of a 25-pound refillable LPG cylinder by 6 per cent in the Northern Emirates, with the retailer charging Dh31, down from Dh33 previously.

The effect of lower oil prices will also help to further reduce consumer prices, which continued to fall slightly last month.

UAE inflation slowed in November for the first time since April as food costs softened, data from the UAE’s National Bureau of Statistics showed on Sunday.

Annualised inflation dipped to 2.82 per cent from 3.11 per cent – the first decrease for six months.

Clothing and textiles prices recorded the biggest month-on-month decrease, falling by 1.6 per cent. Food and soft drink prices fell by 1.43 per cent.

dsaadi@thenational.ae

Follow The National’s Business section on Twitter

Published: December 29, 2014 04:00 AM

SHARE

Editor's Picks
NEWSLETTERS
Sign up to:

* Please select one

Most Read