27 May 2008
DUBAI — Residents in Dubai are in for another price shock as transport companies are mulling a hike in the fees for their services following the recent increase in the diesel price in the emirate. In that case, the prices of essential commodities could also go skyward.
DUBAI — Residents in Dubai are in for another price shock as transport companies are mulling a hike in the fees for their services following the recent increase in the diesel price in the emirate. In that case, the prices of essential commodities could also go skyward.
The price of diesel increased from Dh15.30 per gallon to Dh17 two weeks ago and the oil retailers, including petrol stations, are expecting a further hike due to a steep increase in the global crude oil prices.
A supervisor at the Emarat petrol station told Khaleej Times that the price of diesel was Dh14.30 a gallon a few months ago. ‘It increased to Dh15.30 and two weeks ago, the price again shot up to Dh17. I have no clue whether the price will remain stable in the near future,’ he said.
However, oil-rich Abu Dhabi has no immediate plans to revise the diesel prices. At the city's Adnoc petrol stations, diesel continues to be sold at Dh8.60 a gallon.
Meanwhile, an attendant at Enoc petrol station also confirmed the price increase saying, however, it has not affected the sales. Transport firms say that the increase in the diesel prices has hit them hard forcing them to increase the charges.
‘The transport tariff per trip is fixed according to the diesel prices. However, with the price of diesel shooting up drastically, we cannot afford to operate with the existing charges,’ said Ranjith Kumar, an official at Al Rahim Transport Company.
He pointed out that the operating cost of transport companies has gone up by almost 20 per cent due to the diesel price hike. ‘We will soon increase the tariff as we are left with no other option,’ he said.
Expressing the same sentiments, Mohammed Ashraf, a truck driver in Al Quoz, said, ‘It is impossible for me to charge the old prices for transporting the goods.’
Meanwhile, traders have expressed concern once again saying the hike in transportation charges will further increase the prices of commodities. The increase in the transportation costs due to the hike in diesel price in Dubai cannot be absorbed by the traders. ‘We will have to pass it on to the consumers,’ they said.
‘Almost all the commodities sold in the market are transported from other countries. The increase in transportation costs will have a direct bearing on the prices of essential commodities and other goods,’ says Mohammed Usman, a trader in Al Aweer market.
source : http://www.khaleejtimes.com/DisplayArticle.asp?xfile=data/theuae/2008/May/theuae_May908.xml§ion=theuae
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