From the next week, there will be a rise in the cost of diesel in Dubai and the northern emirates. This is due to the fact that oil prices have closed at $100 (Dh367) a barrel and this has happened for the first time in two years. It will push the price of diesel up further.

From Sunday, the cost of diesel at UAE oil marketing and distribution companies, Emarat, Enoc and Eppco will go up at least by 15 fils. This would be the seventh price hike since prices of the goods started rising in the month of June 2009.

Khalid Hadi, Brand and Corporate Communications Director at Enoc has stated that from January 16 there would be the increase of 15 fils. The price of diesel would ascend from Dh2.75 per litre to Dh2.90 per litre.

He has said that this increase is due to the continuous instability of oil prices in the international market.

For this reason there has been it also a break down on the local UAE market. This is going to affect all fuel stations across Dubai and the northern emirates. He has also added that probably in the near future there may be deflation in the oil prices and this would bring a positive result on the local markets.