Petrol prices increased in UAE for April

3/29/2016 10:08:59 AM

(MENAFN- Khaleej Times) The UAE Ministry of Energy has increased petroleum prices for April. The price of E-Plus 91 will be Dh1.44 a litre Super 98 will cost Dh1.62 a litre Special 95 would be available at Dh1.51 and diesel will cost Dh1.56.

Special 95 rose 11 per cent to Dh1.51 a litre; Super 98 climbed 10.2 per cent to Dh1.62 and E-Plus 91 is up 11.6 per cent to Dh1.44 a litre. Diesel rose 11.43 per cent to Dh1.56 a litre from Dh1.4 a litre in March.

A high-level committee chaired by the Undersecretary of the Ministry of Energy which was attended by the CEOs of oil marketing and distribution companies on Monday reviewed the rise and fall of oil prices in the international markets in the past month.

The Opec basket prices on March 16 rose to $34.58 a barrel from $28.72 a barrel in February. In March 2015 the Basket price was $52.46 a barrel.

According to the latest Press release from the National Bureau of Statistics (NBS) the consumer price index in the UAE increased 2.2 per cent year on year in February 2016 primarily driven by the cost of housing and utilities.

In terms of relative contribution housing and utilities contributed to almost the entire inflation said Alp Eke senior economist at the National Bank of Abu Dhabi.

The Ministry of Energy had announced in July 2015 that starting from August 1 petrol prices would be de-regulated and adjusted as per the international benchmark. Eke said the share of transportation to the UAE CPI had spiked in August and September following the de-regulation.

The price of Brent has increased to $40 from $28 on January 20 this year. "We can expect the transportation sector's contribution to increase too" he added.

As the US dollar continues to appreciate inflation in the UAE is declining especially imported inflation the senior economist said.

The consumer price index has 12 categories and the weights are determined based on household spending surveys he said.

For an average UAE household the spend on transportation is 11 per cent of the budget. "This is not only the petrol price that we pay at the pump but also included in food. It is included in almost every category in small proportions especially food" Eke said.

"In the UAE an average household spends at least 20 per cent on petrol and related categories" Eke added.

With the recent hike in petrol prices it will be reflected in the April CPI. A similar spike was seen in August and September he said.

Taking inspiration from the UAE other GCC nations have introduced reforms in petroleum prices and substantially increased the cost of petroleum products.

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.