Kippreport gets the scoop from Neelesh Bhatnagar, CEO of Emax, and Nadeem Khanzadah, head of omnichannel retail at Jumbo GroupSeptember 2, 2015 5:24
Hike it or don’t, but make up your mind
A new report by a respected think tank suggests that petrol prices in the UAE are set to rise again. Kipp is getting sick of the rumour mill.
October 19, 2010 4:03 by kippreport
News reaches Kipp by way of Emirates 24-7 that the price of fuel in the UAE is likely to rise again by the end of the year.
The one-time business newspaper, now website, says that the respected Economist Intelligence Unit has published a country report in which it says a third price hike is expected to take effect before the end of 2010.
“After two increases in the past five months, more rises in the price of petrol are in the pipeline before the end of the year,” says the report. It states that fuel prices must go up by another half dirham in order that distributors break even.
It goes on to point out the obvious significance of raising fuel prices: “All commodities and services relying on fuel as a major input will see the cost of production and delivery rise. Manufactured and consumer goods will both be affected. Producers are likely to pass the additional cost on to consumers, and higher transportation costs will also trickle down.”
Apparently the price increases have two aims: reduce the losses incurred by the three UAE petrol distributors, and combat the rapidly growing and wasteful consumption of fuel in the UAE.
Kipp is not looking to pay any more for its goods and transport, believe us, but it sometimes seems that the uncertainty is almost as damaging as the hike itself would be. So we say: if it must be done, let’s get it over with. But while we’re at it, let’s be clear about where, when and why.
Businesses and residents of the country will adapt to and cope with whatever comes; we’re good like that. And, as unhappy as it will make us, we’ll handle it better if we know where we stand.
What do you think? Can we cope with another petrol price rise?