Qatar has busted a diesel-smuggling racket that involved smuggling the fuel from water tankers into nearby GCC countries where it was resold for double the price, Woqod has announced.

The diesel was also being sold on the black market to contracting companies in Qatar, which are growing in number due to the mega projects that the country is embarking upon, the local petroleum and fuel supplier said.

Qatari companies can buy diesel at a rate of 70 dirhams a liter, but joint venture companies pay double the price (QR1.40 per liter). Foreign companies pay even more – more than QR3 per liter.

Last year, an astonishing 40 percent of the Qatar’s diesel was smuggled out of the country because of its relatively low cost, the Peninsula reports.

The ensuing local fuel shortages prompted the Ministry of Economy and Finance to allocate QR2 billion to help meet the shortfall. The government also set up a committee to keep an eye out for “shady” practices.