UAE: ENOC CEO Calls for Price Deregulation
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Friday, 15 January 2010 |
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Emirates National Oil Company (ENOC) has asked for lifting governmental
control over petrol prices as selling oil at subsidized rates has been
making to the organization suffer huge financial losses.
Saeed Khoory, the Chief Executive of ENOC, said that the firm has
been bearing loss at all its 170 service stations in UAE by selling
petrol at control price of AED1.37 per litre. The retailers are
forced to sell petrol at far below prices as compared to the actual
prices in the market. Mr Khoory urged the UAE government either to
raise petrol prices or offer direct subsidies to cover up losses being
suffered by retailers.
Khalid Hadi, ENOC's brand and marketing manager said that the firm has
suffered losses of hundreds of millions of dollars at the retail unit
over the past five years. He said that prices need to be at about $40
to $45 a barrel to break even on gasoline sales.
PetrolWorld 130110
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