ENOC’s plea for support

ENOC’s plea for support

Emirates National Oil Company (ENOC) sent out a statement outlining the cause and effect of occurrences earlier this year, from the closure of some of its stations to the burdens of subsidised oil prices.

October 15, 2011 4:52 by Reuters

The following is the statement verbatim:

“With the summer months over, demand for fuel across the ENOC and EPPCO stations in Dubai has increased significantly. ENOC’s retail network across Dubai currently witnesses the heavy rush of motorists, especially during peak hours.

The substantial rise in the price of fuel in the international markets – the highest ever recorded since 2008 – has put a severe burden on ENOC and EPPCO, which for many years have distributed and continue to distribute fuel to end-users at a highly subsidised rate.

The cost of providing subsidized fuel to our customers is expected to lead to a loss of AED 2.7 billion for the company this year. This also has a serious impact on our ability to expand our retail network to meet the growing demand.

Very few stations have been added in Dubai recently and a number of stations had to be closed to undertake infrastructure development work.

The current scenario, where ENOC has to bear the burden of higher international fuel prices while at the same time distributing fuel at subsidized rates, is clearly not sustainable or viable for the company.

ENOC looks forward to the support of the concerned authorities in addressing the concern.”