Diesel price hike in Qatar affecting transportation
The impact of the recent diesel price hike is being felt in the industrial, construction, and transportation sectors, with sub-contractors and companies increasing the heavy equipment and vehicles' rent by 20-30 percent.
Many companies reportedly are waiting for the completion of their existing contract so that they can quote a revised price in the new contract.
An operation manager working in the construction sector in Al Khor said the new quotations he had been receiving from the transportation and heavy-equipment vehicle companies reflected the impact of price hike."All the companies in these sectors have shown 15 to 20 percent hikes in their new quotations."
A few small business groups also complained of not getting diesel at subsidised prices, being offered to some companies by the authorities.
A manager with Al Islahiya Transportation Company said:"Over 80 percent of our vehicles are running under the old contract signed before the diesel price hike."
A driver working with a heavy equipment rental company said:"As the consumption of fuel is very high for vehicles like earth-movers, the additional expense incurred on fuel is not negligible. But we could not increase the rent because of the competition in the market."
Many companies reportedly are waiting for the completion of their existing contract so that they can quote a revised price in the new contract.
Companies in the construction sector were demanding 15 to 20 percent hikes in their new quotations.
Republished from Qatar Tribune
