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Petrol price hike from September

DUBAI - Petrol prices have been hiked from September and will now costs motorists AED 1.50 per gallon according to statement issued by Enoc on Tuesday.

The hike is part of a gradual step to stem the substantial and spiralling losses in the petroleum business of all distributing companies in the region, the statement said.

The businesses of these companies have been suffering high financial losses for years from their fuel sales. The losses are now colossal as global prices have shot up to unprecedented levels. In 2003, the crude oil price was around US $34.00 per barrel and by August 2005 the price of oil has almost doubled to over US $68.00 per barrel. At today's prices the loss per gallon is over AED 4.10 for petrol at the pumps.

The distributing companies expressed that they do appreciate that this increase will be a burden on the UAE motoring public but it is with great regret that this step has been taken. They further stated that they have no choice but to implement their decision to increase prices as this is beyond their control as oil prices continue to spiral and hope that their customers will understand the reasons behind this move which is crucial for the continuity of their business. Also they assured all their customers that they will continue to offer them the best services, which are comparable with the best worldwide.

From September 1, the price of Mogas 95 and Mogas 98 will rise to AED 6.25 and AED 6.75 per gallon respectively, from AED 4.75 and AED 5.25. Pump price of diesel will be increased to AED 7.70 from AED 6.30 a gallon.

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