Adnoc to open 125 new service stations with fuel price profit

Petrol set to rise by 24 per cent and diesel to fall 29 per cent after subsidies were ended.

Adnoc Distribution is to expand its network of service stations. Antonie Robertson / The National

The deregulation of fuel prices is set to trigger a wave of petrol station construction countrywide.

The fuel retailers Adnoc Distribution and Enoc plan to invest in new petrol stations following the government’s move to deregulate prices.

Adnoc Distribution of Abu Dhabi is to open 125 new service stations across the UAE.

The Dubai-government owned Enoc also said it plans to expand its retail network over the next five years, without specifying a number.

“Enoc will leverage its strong business model both at the local and regional level … and will also meet the growing public demand for more service stations in line with the expected population growth in the UAE over the next five years,” Saif Al Falasi, Enoc’s chief executive, said in a statement.

The government’s new free market pricing was announced on Tuesday, with petrol set to rise by 24 per cent and diesel to fall 29 per cent. The changes will come into effect from Saturday.

Adnoc Distribution currently operates 386 service stations and the number is set to rise, according to the chief executive Abdulla Salem Al Dhaheri.

"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," he told the state news agency Wam.

He added that the UAE still has one of the most competitive prices in the region and the world in terms of per capita fuel spending compared to the average income of individuals.

Diesel prices are to fall from Dh2.90 a litre to Dh2.05 a litre, while petrol prices (95 Octane) will increase from Dh1.72 a litre to Dh2.14 a litre.

“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,” said Mr Al Dhaheri.

“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.”

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