ENOC defends new diesel price hikes.

Provided by 7DAYS.ae

A spokesman for the Emirates National Oil Company (ENOC) has moved to explain the factors behind the recent increase in the price of diesel at ENOC and EPPCO service stations in Dubai. In remarks carried by the official WAM news agency, the ENOC spokesman said the company had "no option" but to raise prices, and blamed the international rates of low-sulphur diesel and crude oil for the added cost at the pumps, where diesel has now shot up to dhs18.50 per gallon.

"We procure product from all of the GCC national refineries, at the international price, and although we continually work hard to offset the negative margin incurred on fuel sales, such exceptional market forces leave us no option but to try to recoup a proportion of these losses," the spokesman said.

"Equally, we would consider a price reduction to correlate with any lowering of international prices in the future," he added.

Despite raising its diesel prices in the past two months, ENOC is "still incurring losses with each gallon sold", according to the spokesman, as low-sulphur diesel has risen 21 per cent this month alone to $173 a barrel, while crude oil soared to a record high of $135 a barrel. "[ENOC] endeavours to minimise the level of price increases passed on to the consumer, and to maintain fuel prices at amongst the lowest in the developed world," the spokesman said.

"While we are operating in difficult times, as a government-owned business, we are a people-oriented service and are committed to supporting the economic infrastructure of Dubai."

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