Bahrain’s oil minister, Abdulhussain Mirza, said that his country has proposed to GCC members to unify refined products prices as an attempt to curb smuggling between the different countries.
The minister said that the members welcomed the proposal and they appointed a consultancy company to look into the possibilities of a unified pricing policy. The report’s finding and recommendations are expected early next year.
I think that the Bahraini proposal is logical in the fight against smuggling of petroleum products. Saudi Arabia – which is facing exactly the same problems – will support it.
The price of refined products in Saudi Arabia and Bahrain, mainly petrol, are the lowest in the region, at US$0.16 per litre in the Kingdom and about $0.26 per litre in Bahrain.
This is half the price of the UAE at around $0.46 per litre, after the government increased the price twice this year and a further hike to $0.59 per litre is expected next year.
Consumers in the UAE will be happy if the proposal gets approval, but I don’t think that companies in the country – mainly Emirates National Oil Company (ENOC), Emirates Petroleum Products Company (EPPCO) and Emarat – will share the same joy with its clients.
Ultimately these companies want to keep raising the price to reach parity with the international market to help stem their losses, as they claim.
Despite the logic of the proposal, the implementation will not be easy, particularly given the several UAE firms that work in the field, compared to other GCC countries, where the business is monitored by the national oil companies.
Staff Writer
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Can GCC members unify refined products prices?
Bahrain has proposed to GCC members to unify refined products prices
Bahrain’s oil minister, Abdulhussain Mirza, said that his country has proposed to GCC members to unify refined products prices as an attempt to curb smuggling between the different countries.
The minister said that the members welcomed the proposal and they appointed a consultancy company to look into the possibilities of a unified pricing policy. The report’s finding and recommendations are expected early next year.
I think that the Bahraini proposal is logical in the fight against smuggling of petroleum products. Saudi Arabia – which is facing exactly the same problems – will support it.
The price of refined products in Saudi Arabia and Bahrain, mainly petrol, are the lowest in the region, at US$0.16 per litre in the Kingdom and about $0.26 per litre in Bahrain.
This is half the price of the UAE at around $0.46 per litre, after the government increased the price twice this year and a further hike to $0.59 per litre is expected next year.
Consumers in the UAE will be happy if the proposal gets approval, but I don’t think that companies in the country – mainly Emirates National Oil Company (ENOC), Emirates Petroleum Products Company (EPPCO) and Emarat – will share the same joy with its clients.
Ultimately these companies want to keep raising the price to reach parity with the international market to help stem their losses, as they claim.
Despite the logic of the proposal, the implementation will not be easy, particularly given the several UAE firms that work in the field, compared to other GCC countries, where the business is monitored by the national oil companies.
Staff Writer
Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and... More by Staff Writer
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