ID :
13442
Wed, 07/23/2008 - 11:00
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https://oananews.org//node/13442
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Traders hit hard by diesel prices
Dubai, July 23, 2008 (WAM)- Diesel is giving headache not only to drivers of commercial vehicles, but also to traders as they are now feeling the pinch of the price rise, according to sources.
As a result, a leading transport company has recently asked a supermarket chain to increase the transport charges by 30 per cent. In a letter, the company said it would charge Dh1,500 for a trip between Dubai and Abu Dhabi instead of Dh1,100, an increase of Dh400, as diesel prices have become unbearable. The informal transport sector has already hiked the fares by 15-20 per cent according to a report in 'Khaleej Times.'An owner of a medium sized construction firm also said that the higher fuel cost will affect the construction firms as well because diesel is used for transporting construction material and running heavy machinery and equipment.
Normally, transport expenses come to two per cent of the total cost of a project. Due to the 130 per cent price difference, which exists between the diesel prices of the oil marketing companies in Dubai and AbuDhabi, the availability of fuel is erratic.
For big construction companies, the fuel is made available on permits issued by oil marketing companies-Adnoc Distribution, Emarat, Eppco, and ENOC. But, for additional supplies, the only source is black-market, which can meet thedemand on paying 25-30 per cent more price.
A parallel diesel trade has been witnessed in the country lately, according to market sources. Traders bring the fuel from the countries in the region,where diesel is available in large quantities and at affordable prices.
Though, the supplies are not made in bulk.
Inside the country, the pressure has increased on Adnoc distribution centres as long queues of commercial vehicles at its outlets are getting longer as it still sells diesel at Dh8.60 a gallon, compared with Dh19.25, a gallon, at three other oil companies. " Everyday we have to face huge demandchallenges to meet," said a source at Adnoc Distribution.
Adnoc sells fuel through a network of petrol stations in Abu Dhabi, Sharjah, Fujairah and Ras Al Khaimah. Since Abu Dhabi has its own refining facilities, it sells its products through its filling stations and subsidises the prices as part of government policy not to burden the masses with the increase in prices. - Khaleej Times
As a result, a leading transport company has recently asked a supermarket chain to increase the transport charges by 30 per cent. In a letter, the company said it would charge Dh1,500 for a trip between Dubai and Abu Dhabi instead of Dh1,100, an increase of Dh400, as diesel prices have become unbearable. The informal transport sector has already hiked the fares by 15-20 per cent according to a report in 'Khaleej Times.'An owner of a medium sized construction firm also said that the higher fuel cost will affect the construction firms as well because diesel is used for transporting construction material and running heavy machinery and equipment.
Normally, transport expenses come to two per cent of the total cost of a project. Due to the 130 per cent price difference, which exists between the diesel prices of the oil marketing companies in Dubai and AbuDhabi, the availability of fuel is erratic.
For big construction companies, the fuel is made available on permits issued by oil marketing companies-Adnoc Distribution, Emarat, Eppco, and ENOC. But, for additional supplies, the only source is black-market, which can meet thedemand on paying 25-30 per cent more price.
A parallel diesel trade has been witnessed in the country lately, according to market sources. Traders bring the fuel from the countries in the region,where diesel is available in large quantities and at affordable prices.
Though, the supplies are not made in bulk.
Inside the country, the pressure has increased on Adnoc distribution centres as long queues of commercial vehicles at its outlets are getting longer as it still sells diesel at Dh8.60 a gallon, compared with Dh19.25, a gallon, at three other oil companies. " Everyday we have to face huge demandchallenges to meet," said a source at Adnoc Distribution.
Adnoc sells fuel through a network of petrol stations in Abu Dhabi, Sharjah, Fujairah and Ras Al Khaimah. Since Abu Dhabi has its own refining facilities, it sells its products through its filling stations and subsidises the prices as part of government policy not to burden the masses with the increase in prices. - Khaleej Times
