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Abu Dhabi: Transportation businesses in Dubai heaved a sigh of relief when diesel prices were cut and some truckers even lowered their freight charges, but restrictions on truck movements on Dubai's roads remain a concern, transporters told Gulf News.
They said lower diesel prices in Dubai have drastically cut the number of transportation companies lining up their trucks at the pumps run by Abu Dhabi's Adnoc Distribution for cheaper diesel.
Dubai oil retailers - Emirates National Oil Co (Enoc), Emirates Petro-leum Products Company (Eppco) and Emarat slashed diesel price by 50 fils a gallon effective August 18, marking their fourth straight cut in less than a month. Diesel in Dubai now sells at Dh17.25 a gallon, down from Dh19.25 on July 28.
"We have marginally cut our freight rates, the rates are determined by the route and the size of the cargo," Mohammad Sadiq Abdullah, manager of Dubai-based Al Aweer General Land Transport Company, told Gulf News.
Abdullah's company operates a fleet of 33 vehicles.
Ranjit Singh, business development manager with Weiss-Rohlig UAE, a Dubai-based German-Austrian logistics company operating five trucks, said the diesel price cuts are a welcome relief, but as of now, they will keep their freight rates unchanged.
"The RTA restricts the movement of trucks. The trucks cannot ply on Dubai roads between 6.30am and 8.30am, 1pm and 3.30pm, and 5.30pm and 8.30pm. This doesn't allow our trucks to do more than one trip in a day," said Singh.
"If the RTA restrictions on truck movement are lifted, the freight rates will drop drastically," he said.
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