BY MOHAMMAD SHOEB
DOHA: Qatar Fuel (Woqod) yesterday said it is highly unlikely that the retail prices of petrol and diesel will be reduced, despite a significant fall in global oil prices, as the products are already heavily subsidised.
“The price we are selling (fuel) at pumps is still way below the international price for petrol and diesel,” an official said. “If you look at the mid-Arabian Gulf Platts prices of diesel, for example, it is about QR2.50 per litre, but we are selling it at QR1.50 per litre. It’s possible only because of the state subsidies.”
Asked who will be the end-beneficiary of the reduced prices, he said: “Retail customers are getting heavily subsidised petrol and diesel — QR1 and QR1.5 per litre, respectively. Given the decline in global oil prices, the government will have a reduced gap between the subsidised prices petrol and diesel and the international prices. Overall, the government will have lower revenues from oil exports due to the lower price of crude and refined products.”
To a question whether the current oil scenario will have any positive impact on the company’s profitability, he said Woqod is well-diversified and does not rely only on its fuels business.
“What we are trying to do is spread our risks by having diverse business portfolios, for example Fahes (vehicle technical inspection centres), Sidra (chain of retail outlets) and others, so that whenever there is fluctuation of fuel prices in the market over which we have no control, the company is assured that the overall effect on its businesses is limited.” Diesel prices were increased to QR1.50 per litre last May from QR1 effective since late January 2011. As for bulk prices for projects, local projects get diesel at QR1.50 per litre (same as retail price) and joint venture projects at QR1.80.
The Peninsula
