Members of the Central Municipal Council (CMC) and a number of businessmen have warned that the recent diesel price hike will cause a new wave of increase in the cost of living in Qatar, local Arabic daily Arrayah reported.
The retail price of diesel has been increased to QR1.5 per litre in Qatar with effect from May 1, Woqod (Qatar Fuel) CEO Ibrahim Jaham al-Kuwari had announced on April 30. The previous retail price was QR1 per litre.
“It has also been decided to increase bulk price for projects, to the two categories of Local Price and Joint Venture Price at QR1.5 per litre and QR1.8 per litre respectively, whereas the International Price category will remain the same,” he had explained.
CMC member Hamad al-Muhannadi told Arrayah that “since diesel is steering the industry, agriculture, fishing and all other economic and commercial activities, all projects will add this increased cost which subsequently will be paid directly or indirectly by the citizens”.
He urged the authorities concerned and the Ministry of Economy and Commerce to revoke the diesel price hike “as it imposes a huge burden on the citizens, the residents and the small and medium industries”.
Arrayah reported that the diesel price rise was going to reflect on the prices of all goods, especially food stuff and construction materials, and the costs of services to the animal farms due to the increase in costs of water and fodder transport.
“The water tanker operators may increase their charges by 40 to 50% citing the diesel price hike,” a citizen told the daily.
A number of businessmen and other members of the CMC complained to Arrayah that the decision on diesel price hike has not considered the social and economic implications.
They expect a hike in the costs of construction as most of the equipment of the construction companies and the bricks and cement factories are powered with diesel.
“Increase is also expected in fish prices as boats require diesel. The fuel price hike will increase costs of fish transportation and distribution,” one of them said.
According to Arrayah, businessmen and CMC members revealed that a number of contracting companies had complained to the authorities concerned to cancel the diesel price hike “which makes them incur losses to the tune of millions of riyals”.
“The companies have called for reconsideration of the rate of diesel price increase and to be compensated for the additional costs of the contracts,” the daily added.
