Price hikes of 15 and 20 percent planned for petrol and diesel

Price hikes of 15 and 20 percent planned for petrol and diesel

If petrol price hikes proceed, UAE consumers may pay twice what their Saudi counterparts pay at the pump.

April 26, 2010 10:55 by Katherine Azmeh

Petrol prices in the UAE are expected to continue their upward trend, with the four government owned petrol distribution companies reportedly planning additional price hikes next month, the Gulf News reported Monday.

In an ongoing effort to decrease government gas subsidies, consumers can expect petrol prices to rise 15 percent next month, with diesel up around 20 percent, the report said.

Quoting an unnamed source at one of the petrol companies, the Gulf News reports today that regular and special petrol grades are expected to increase by AED 0.23 per liter, including a price hike on the highest grade super of AED0.15 per liter.

Diesel is expected to rise AED0.25 per liter, with a second hike to follow in June.

“Every country has its own policy with respect to subsidies,” the Gulf News reported, quoting Angad Rajpal, energy analyst at Prime Securities in Dubai. “Also the UAE does not have enough refining capacity. “Linking local prices to international oil prices gives [the government] a better way to manage end-user demand,” he added.