UAE: Grocery prices drop as diesel rate decreases in March

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PHOTO BY ARCHIVE

March: Grocery prices drop as diesel rate decreases

Grocery prices in the UAE will drop this month after the government announced a seven percent reduction in the diesel price for March. It will cost Dh3.14 per liter, compared to Dh3.38 the previous month.

According to Dr. Dhananjay Datar, Chairman and Managing Director of Al Adil Trading Company, diesel is mainly utilized in commercial vehicles, so the reduction in the local diesel rate will result in a drop in logistic charges.

“The commodity and food items prices will definitely come down because of the cut in diesel rate, thus benefiting the consumers, wholesalers, and other players such as restaurants and catering companies,” Datar said.

He added that since over 90 percent of commercial vehicles in the UAE run on diesel, shipping goods between Emirates and from warehouses to supermarkets will be less expensive this month.

Kamal Vachani, Group Director and Partner at Al Maya Group, also claimed that the cut in diesel rate would help the transport companies in costs and result in an overall price drop in general merchandise.

The reduction of fuel rates usually translates into lower grocery prices as consumer and commodity prices are significantly connected. If energy prices drop, it pushes shipping and transport charges lower.

The drop in the price of diesel could mean bigger savings for UAE residents as grocery essentials would cost less for the holy month. RZSP/Expat Media

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