Shipping goods from one emirate to another and from warehouses to supermarkets will see cost reductions this month, ultimately benefiting customers
Grocery prices to drop this month, UAE government announcesDiesel prices even dropped by % March.UAE’s Fuel Price Council even as petrol prices rise by 4 fils a liter Cut diesel prices by 24 fils. The price per litre was Dh3.14 in March, compared to Dh3.38 in the previous month.
Consumer goods and commodity prices are closely linked to global fuel prices, as lower energy prices push down shipping and transportation costs, which often translates into lower prices for groceries and other consumer goods at the retail level.
Diesel prices drop as residents prepare to buy essentials ahead of schedule Ramadanmost likely starting March 23.
Dr. Dhananjay Datar, chairman and managing director of Al Adil Trading Company, said that diesel is mainly used in commercial vehicles, so lower local diesel rates will lead to lower logistics costs. “Due to lower diesel prices, commodity and food prices will definitely come down, benefitting consumers, wholesalers and other players such as restaurants and catering companies,” he said.
“Goods shipped from one emirate to another and from warehouses to supermarkets in the UAE will cost less in March because more than 90% of commercial vehicles run on diesel. So this will ultimately benefit customers.”
That means grocery essentials will be much less expensive during the holy month. Retailers often run shopping promotions ahead of Ramadan, offering massive discounts. The drop in diesel prices could save residents even more money.
In addition to lower diesel prices, commodity prices have also declined in the UAE and globally due to lower freight rates over the past few months and the availability of certain commodities from Ukraine. Freight rates have soared during the pandemic, pushing up inflation in the UAE and all major economies. But now as life returns to normal after the pandemic, food prices are falling back to more stable levels.
According to the latest data report released by Emirates NBD Research on Tuesday, Dubai’s inflation rate fell by 0.6% in January 2023, and the annual inflation rate fell from 5.2% in December 2022 to 4.6%.
Kamal Vachani, group director and partner at Al Maya Group, said the reduction in diesel rates “will definitely help transport companies to reduce their costs, which will eventually lead to an overall reduction in general commodity prices.”
He added that the UAE government has been trying to keep prices as affordable and competitive as possible for consumers.