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Petrol hikes – do you agree?
Local media reports that fuel in the UAE will receive another price hike in the weeks following Eid. What’s your reaction?
August 22, 2010 1:39 by Samuel Potter
According to the Gulf News, petrol prices are set to rise in the UAE for the third time this year. A source from the oil company Adnoc told the paper that fuel distribution companies are about to increase the price. The source said the move will be made “a few weeks after Eid holiday.”
It seems that in private meetings, the boards of the fuel suppliers (including Enoc and Epco) have expressed their fears of significant losses if the price remains the same. Gulf News says the increase this time will be 20 fils per litre, meaning that the cost of Special fuel will increase from AED1.72 to AED1.92 per litre.
“The decision to raise prices further will depend on the consumers’ reaction to the third increase,” says the paper. Its Adnoc source says all the fuel companies are lobbying for the price to reach AED2.50 by the end of the year. Their tactic is to implement sudden changes at different stages.
The paper also surveyed Emiratis who said they believe costs in the UAE are now double that of any other Gulf country’s fuel.
“I travelled to Qatar via Saudi Arabia and filled my eight-cylinder four wheel drive for Dh120, which would be about Dh210 in the UAE,” Adel Ahmad said. “I travelled to the United States in the summer vacation in July, I rented a six cylinder caravan, filled the tank for Dh145, which would be about Dh200 in the UAE,” said Khalid Ahmad Al Hammadi.
Given that the fuel companies may impose even larger price hikes depending on the reactions to this one, what do you think? Are the price hikes justified? How does the cost of fuel here compare to fuel in your home country?