When petrol shortages in the Northern Emirates last year led to long waits at filling stations, it was clear that the solution would eventually have to be nationwide. After 10 months of sporadic shortages, consumers will breath a sigh of relief as new stations begin to open.
As The National reported in the Business pages yesterday, a plan by Abu Dhabi National Oil Company (Adnoc) to build an oil-products import terminal in Sharjah, with construction starting in June, could help alleviate supply bottlenecks and ensure fuel arrives in a timely manner (and eliminate the need for inefficient lorry traffic in the process). Fuel supplied to regional power plants, another perennial problem during periods of peak energy demand, could also be better provided.
In the near term, drivers in the Northern Emirates may still have to circle northern highways in search of shorter queues. Many of the region's Enoc and Eppco stations, owned by the emirate of Dubai, have not reopened since the shortages first began last year.
With the price cap and subsidy on petrol, it did not make economic sense for the emirate to take further losses, and a nationwide solution was needed.
Given this situation, it is encouraging that Adnoc has chosen to move in. Unlike its northern counterparts, Abu Dhabi's oil company has the production capacity and deep pockets to absorb the losses that come with selling subsidised petrol. While the better long-term strategy would be for the UAE to gradually roll back mandated price caps, for now Adnoc's expansion plans will help to address consumers' burdens.
There will be some significant changes associated with the decision. Many Enoc and Eppco stations have likely pumped their last litre of petrol. As an official from the Sharjah Executive Council said earlier this month, in that emirate both brands most likely will be replaced by one of their competitors. It is not clear when that will happen, but Adnoc does have plans to expand its network of fuelling stations from 135 in Abu Dhabi to 234 across the country.
Adnoc is rightly filling the shortage, but it will be doing so at a loss. As welcome as the petrol subsidies are to ordinary motorists, the long-term solution is to let prices rise in accordance with the market.
Killing of Qassem Suleimani
Honeymoonish
Director: Elie El Samaan
Starring: Nour Al Ghandour, Mahmoud Boushahri
Rating: 3/5
Match info
Liverpool 3
Hoedt (10' og), Matip (21'), Salah (45+3')
Southampton 0
if you go
The flights
Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.
The trip
Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.
Company Profile
Company name: Hoopla
Date started: March 2023
Founder: Jacqueline Perrottet
Based: Dubai
Number of staff: 10
Investment stage: Pre-seed
Investment required: $500,000
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
What is a Ponzi scheme?
A fraudulent investment operation where the scammer provides fake reports and generates returns for old investors through money paid by new investors, rather than through ligitimate business activities.
Best Academy: Ajax and Benfica
Best Agent: Jorge Mendes
Best Club : Liverpool
Best Coach: Jurgen Klopp (Liverpool)
Best Goalkeeper: Alisson Becker
Best Men’s Player: Cristiano Ronaldo
Best Partnership of the Year Award by SportBusiness: Manchester City and SAP
Best Referee: Stephanie Frappart
Best Revelation Player: Joao Felix (Atletico Madrid and Portugal)
Best Sporting Director: Andrea Berta (Atletico Madrid)
Best Women's Player: Lucy Bronze
Best Young Arab Player: Achraf Hakimi
Kooora – Best Arab Club: Al Hilal (Saudi Arabia)
Kooora – Best Arab Player: Abderrazak Hamdallah (Al-Nassr FC, Saudi Arabia)
Player Career Award: Miralem Pjanic and Ryan Giggs
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)