04 December, 2007

Why are there so many trucks on the road?

A 42% price differential for diesel could be one explanation.
"The price difference is so big that it is cheaper for us to send our vehicles to Abu Dhabi for diesel," said a manager of a Dubai transport company. Diesel prices have been going up in Dubai for several months.
Please. It's time to rationalize policy by eliminating the artificial differential. Otherwise already congested roads are made worse.

The Adnoc stations in Dubai and Sharjah also continue to have long queues because Adnoc's price is lower. Those queues spill out onto the street adding to congestion.

2 comments:

the real nick said...

I am all for it.

But John, would it not be more useful to perhaps write directly to the Department of Economy instead of this blog?

elcondo said...

Superb idea.

The present rate of inflation is not quite enough. People in the middle and lower income groups have their backs to the wall and their necks squeezed, but hey, when we can go all the way, why not?

After all, us rich guys will have less traffic to deal with.

Thanks, I think.

(P.S.: Perhaps the economists out there have an answer to this puzzler--every time the price of diesel goes up by 10 fils a gallon, the price of rice goes up by Dh 2 per kilo...what exactly is the ratio here? To ordinary folks, it seems like each truck carries 1 kilo of rice to its destination.)

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