UAE: ENOC Cannot Sell Fuel at A Loss

 Four months after its fuel service stations in the Northern Emirates ran dry, Emirates National Oil Company (Enoc) is holding out hope for the Government to help get them operating again without the large losses sustained in recent times.

The UAE maintians fuel prices at artificially low levels to help keep the cost of living in check. This year Enoc and its retailing competitor Emarat came under pressure as the oil price climbed as high as US$126 a barrel while they had to continue selling fuel at last year's prices. Last year, Enoc paid Dh1.5 billion (US$408.8 million) to make up for the difference, and this year its bill was projected to rise to Dh2.7bn, the company said in April.

Zaid Alqufaidi, MD Marketing at Enoc stated  "Our fuel service station network is ready to operate once the decision is taken on the pricing. We procure the product at international price levels and are forced to sell it at UAE regulated price. The differential gets absorbed by the company, and this is not sustainable."

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