With reporting from Ankita Menon

Qatar Fuel (Woqod) has increased the price of diesel by some 50 percent, from QR1/liter to QR1.5 for local companies, and QR1.8/liter for joint ventures.

Companies not based in Qatar will continue to pay QR1/liter, Woqod said last night.

The firm did not explain the reason for the hike, only mentioning in a statement that it was following the instruction of “authorities.” Two managers at Woqod petrol stations declined to comment about the matter today.

The move does not appear to be sitting well with several businessman in the country, who said it came as a “rude shock,” according to the Peninsula.

They told the newspaper that the fallout of higher diesel prices could include rising costs on the myriad construction projects underway in Qatar, as diesel is used to fuel buses, trucks, trailers and other equipment.

This is Qatar’s first hike in fuel prices since January 2011, when rates of petrol, diesel and kerosene jumped by more than 25 percent.

According to Woqod, all petrol stations have been asked to readjust petrol dispensers to take into account the new price, and change signage about the cost of diesel.

In a statement, the company said:

“With regard to project consumers, this announcement and any other communication to this effect, individually made to each of them, will be deemed to be an amendment of the contract concluded with each of them for supply of diesel product.”

Thoughts?