UAE- Adnoc cuts LPG prices for third month in a row

Date

1/11/2016 6:35:16 PM

(MENAFN- Khaleej Times)

The LPG consumers in Abu Dhabi and Northern Emirates who purchase subsidy-free gas cylinder will now get the fuel in the month of January cheaper by Dh2 a cylinder.

This is for the third time consecutive that Abu Dhabi's Adnoc Distribution which markets the gasoline and LPG in most parts of the country has reduced the retail prices of LPG cylinders.

The distribution company announces the new retail prices on the 10th of every month in line with the rise and fall of oil prices on international markets.

The consumer this month will be paying Dh44 per 25lb cylinder from the earlier retail price of Dh46 and Dh88 per 50lb cylinder from the earlier price of Dh92.

"The new prices reflect the global surge in the pricing of the product" says Khalid Hadi vice president of marketing and corporate communications division at ADNOC Distribution.

However the holders of Rahal e-Gas cards the price structure have not been changed. They can refill 25lb cylinder for Dh20 and 50lb for Dh30 across Abu Dhabi and the Northern Emirates.

Most of Abu Dhabi's LPG consumers have obtained E-Rahal Card which allows them substantial subsidy on purchasing the cylinder.

"Oil demand grew strongly in Qatar and the UAE" according to an OPEC's report in December 2015.

In 2016 Middle East oil demand growth may be challenged by some downside risks which relate to the continuing geopolitical turbulence in some countries the OPEC said.

The OPEC Basket Price of oil fell to rose $39.25 a barrel on January 7 2016 from $27.8 on January 1.

The OPEC Basket Price dropped to $33.64 a barrel on December 15 from $40.5 a barrel on November 15.

Khalid Al Awadhi the chief executive officer of Hawk Energy a Dubai based consultancy said that the LPG prices chase the rise and fall in crude oil prices.

The UAE is world top producer of LPG with 9 million metric tons of output a year which finds its markets in the high growth economies of China India Japan and Korea fueling their economies.

The GCC nations of KSA Kuwait Qatar and Oman provide generous amount of subsidies on LPG to even commercial and industrial consumers.

However the UAE only gives subsidy to its residential consumers both the UAE nationals as well as expatriates from the day one while industries hotels restaurants and bakeries have been excluded from this policy and have to pay full price he said.

The expert said the UAE must do away with subsidies on LPG in line with withdrawal of subsidies on petroleum products in order to make the economy more efficient and to bridge fiscal deficits.

Adnoc Distribution is committed to monitoring the markets as well as following up with all relevant stakeholders in the UAE to guarantee fair implementation of the new pricing. The company wishes to reiterate its priority to provide best-in-class products and services at the most fair prices to its loyal customers."

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