The proceeds of forthcoming deregulation of fuel prices in the UAE will enable ADNOC Distribution to open 125 new fuel service stations in the coming years, the company has announced.
ADNOC Distribution already operates 386 fuel service stations nationwide, and has previously operated in a market environment of strict price controls that constrain profitability. "The company will utilise the minor profit margin accrued following the deregulation of the fuel prices to add 125 new service stations that will provide value-added and convenience-enhanced services to customers in the UAE," ADNOC Distribution CEO Abdulla Salem Al Dhaheri said. He added that the UAE still maintains one of the most competitive prices in the region and the world at large.
Al Dhaheri was quick to highlight the long-term benefits of a deregulated price environment for the UAE's citizens and ADNOC customers. "The new direction of deregulating the prices will allow ADNOC Distribution to leverage its expansion plans to meet the rising demand for petroleum and allied products by the public in line with the sustained urban growth the UAE is witnessing across all regions. The decision will also in the long-term allow us to enhance the quality of products and services and deliver an improved customer experience via our service centres."
The deregulation of fuel prices, effective August 1, has been warmly welcomed by players in the downstream sector. Al Dhaheri also spoke of a "real challenge" to maintain low diesel prices for the benefit of the local economy. "We are confident that the move will positively impact our economy, and will in turn reduce the operational costs across a wide range of pivotal sectors including industries, transportation, shipping among others," he noted.