Worries over diesel price hike

DUBAI — Residents and traders in the emirate have voiced their concern over the diesel price hike effected in the UAE yesterday.

By A Staff Reporter

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Published: Thu 1 Jun 2006, 12:11 PM

Last updated: Sat 4 Apr 2015, 7:19 PM

The diesel price is now Dh8.90 per gallon, up by 0.20 fils, an increase for the fourth time in less than two months. As a result, the sentiment across society and industry is one of apprehension about further escalation in the cost of living. “We do not know what kind of effects diesel price can have on the prices of commodities. We all are in trouble already with the skyrocketing living cost and I do not think the residents will be able to take another burden,” said Achut Mahadevan, a resident of Karama.

He said if the transportation cost increases, it will definitely affect the prices of consumer goods. “I really do not know how to handle the situation. If the cost will increase it will add more burden on the resident's domestic budget,” he said.

Sojan Antony, another resident of Dubai echoed the same view. “The residents are already in trouble with the increasing living cost. If the consecutive diesel price hike causes increases in consumer goods cost, residents will have to face another burden. I hope the officials will take necessary action to avoid another increase in living cost.”

“This rise will be a burden for the commercial transporters, who could not adjust to the previous hikes. Now we are forced to revise the transport charges which would be recovered from the consumers,” said a businessman who deals in commercial transportation.

“The prices of daily-use commodities are very sensitive to the rise in fuel prices, as wholesalers as well as retailers would not adjust to the rise in cost of transport,” he pointed out.

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