Emarat stations face gasoline shortage in UAE

Emarat stations face gasoline shortage in UAE

Local media reported around 60 out of 180 stations were out of petrol or facing shortages.

April 20, 2011 1:47 by Reuters

UAE fuel retailer Emarat has experienced fuel shortages at some petrol stations over the past week after a cargo failed to discharge at port, a company official said on Wednesday.

“This (problem) will be resolved in 2 to 3 days,” said the official, who asked not to be named.

He did not say how many petrol stations were affected but local media reported around 60 out of 180 stations were out of petrol or facing shortages. Emarat mainly services Dubai and other emirates in the United Arab Emirates.

“We’re restocking at the moment and I think our network will get back to shape in a couple of days,” he said. “We had a logistical problem at the port. It has been one cargo only but our distribution programme has been disrupted,” he added.

There has been a rush to rival petrol stations operated by Emirates National Oil Co. (Enoc) and its subsidiary Emirates Petroleum Products Co (Eppco).

Gasoline is heavily subsidised in the UAE but the government had begun to phase out the subsidies, which cost the country hundreds of millions of dollars per year.

Emarat’s term suppliers are BP and Vitol after the two were awarded in a January tender to supply around 80,000 tonnes per month for the April-December period.

(Reporting by Humeyra Pamuk; editing by Jason Neely)