Enoc: selling petrol at a loss cannot continue


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Selling petrol at a loss because of the federal cap on prices is unsustainable, and is hampering its ability to open new outlets in Dubai, Emirates National Oil Company said yesterday.

Enoc has struggled to supply fuel to drivers in the Northern Emirates, and says the cap is now threatening its ability to do its job on its own home turf.

The company, which is owned by the Dubai Government, said it was on track to record a Dh2.7 billion loss from selling fuel at artificially low rates."This also has a serious impact on our ability to expand our retail network to meet the growing demand," the company said.

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

Enoc's statement was the latest plea for help from fuel retailers caught between high oil prices and the UAE's effort to keep the cost of living in check.

Retailers such as Enoc and its competitor Emarat, which is owned by the federal Government, are required to sell petrol at a federally capped retail price of Dh1.61 a litre for the lowest fuel grade. The price went up twice last year, by a total of 28 per cent, but they still sell at a loss.

Saeed Khoory, the chief executive of Enoc, has said they lose money on petrol sales when global crude oil prices rise above US$45 a barrel. Brent crude reached $126 in April amid regional unrest and the shutdown of supplies from Libya.

Prices have relaxed only slightly in spite of the prospect of renewed pumping, closing on Friday at $115.50.

Drivers were turned away from petrol stations in the Northern Emirates for the first time this year in May, as retailers let supplies run down.

At the time, Enoc said its dispensing pumps were undergoing technical upgrades. Stations there have been closed since the local authorities ordered them to stock up or shut down.

Solutions to the petrol shortage so far have addressed the cash losses rather than the underlying policy.

In June, Sheikh Mohammed bin Zayed, the Crown Prince of Abu Dhabi, ordered Abu Dhabi National Oil Company to alleviate the shortage in Sharjah.

Also in June, the federal Government gave Emarat a Dh9bn cash injection to help to keep it going.

"If they sell even one litre of gasoline they are making a loss. Just because of their existence, they are making a loss," Thaddeus Malesa, a Gulf energy analyst, said at the time. "The only alternative that they have is if the subsidies are lowered."

Enoc said last month it was branching into other businesses to hedge against the loss-making petrol sales, including a regional chain of food outlets and a special clean fuel.

"Enoc looks forward to the support of the concerned authorities in addressing the concern," the company said yesterday.

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Youssef Chahed (former prime minister, leader of Long Live Tunisia): 7.3 per cent

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THE DETAILS

Director: Milan Jhaveri
Producer: Emmay Entertainment and T-Series
Cast: John Abraham, Manoj Bajpayee
Rating: 2/5

if you go

The flights

Air France offer flights from Dubai and Abu Dhabi to Cayenne, connecting in Paris from Dh7,300.

The tour

Cox & Kings (coxandkings.com) has a 14-night Hidden Guianas tour of Guyana, Suriname and French Guiana. It includes accommodation, domestic flights, transfers, a local tour manager and guided sightseeing. Contact for price.

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
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Dir: Roar Uthaug
Starring: Alicia Vikander, Dominic West, Daniel Wu, Walter Goggins
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Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

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Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

MATCH INFO

Real Madrid 3 (Kroos 4', Ramos 30', Marcelo 37')

Eibar 1 (Bigas 60')

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