The price of petrol is unlikely to fall in Qatar, despite a massive drop in global oil prices, Qatar Fuel, the country's only fuel distributor, has said.

An official from the company, 40 percent controlled by state-owned Qatar Petroleum and jointly listed, said the lower price per barrel would help to reduce the government’s subsidy burden rather than further line the pockets of drivers.

“The price we are selling [fuel] at pumps is still way below the international price for petrol and diesel,” the official was quoted as saying by The Peninsula.

“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.”

Global oil prices have fallen below $50 a barrel, a decline of about 60 percent since June and a near six-year low.

The Qatar Fuel official said the company was deliberately diversified to protect it against heavy falls in the oil price and its profitability would be minimally affected.

“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,” he said.

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QNE

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