Petrol retailer Emarat is in the process of transferring 74 of its pump stations in the northern emirates to Abu Dhabi National Oil Company (Adnoc) in a move to save Emarat millions of dollars a year, three industry sources said.
"Adnoc has been supplying the fuel for these stations," a source at Emarat said, adding that the day-to-day management of the stations was still being handled by Emarat.
"The stations are still under our umbrella, the staff is under Emarat contracts. But I think within a couple of months it will be fully taken over by Adnoc," he said.
Emarat and Adnoc signed a memorandum of understanding last May for Emarat pump stations in Sharjah, Umm Al Quwain, Fujairah and Ras Al Khaimah to be taken over by Adnoc.
A second source familiar with the matter said there was no financial transaction involved, as it was simply federal assets being handed over to Adnoc.
He said the handover was almost complete, saving Emarat around Dh80 million each month by slashing the volume of fuel it sells for much less than it buys it for.
Heavy fuel subsidies are a widespread social benefit across Gulf countries, but leave those fuel retailers who are not linked to large oil producers like Adnoc taking billion dollar losses selling gasoline at well below their acquisition cost.
A UAE plan to phase out the generous subsidies in the Opec member have quietly been shelved after widespread social unrest across the Arab world, which has so far spared the UAE.
Dubai government-owned Emirates National Oil Company, Emirates Petroleum Products Company and Emarat have been hit hardest as the Dubai government has not compensated the companies for years.
Adnoc's profitable upstream activities easily cancel out any losses at its petrol pumps, analysts say. Adnoc distribution was not available for comment.
The combined losses of the four UAE state-owned retailers were estimated to reach to Dh12 billion last year from Dh8.5bn in 2011.
Standard grade petrol in the UAE is sold at Dh1.72 per litre, less than half of the global average price of US$1.21 a liter, according to World Bank data.
* Reuters
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RESULTS
1.45pm: Maiden Dh75,000 1,400m
Winner: Dirilis Ertugrul, Fabrice Veron (jockey), Ismail Mohammed (trainer)
2.15pm: Handicap Dh90,000 1,400m
Winner: Kidd Malibu, Sandro Paiva, Musabah Al Muhairi
2.45pm: Maiden Dh75,000 1,000m
Winner: Raakezz, Tadhg O’Shea, Nicholas Bachalard
3.15pm: Handicap Dh105,000 1,200m
Winner: Au Couer, Sean Kirrane, Satish Seemar
3.45pm: Maiden Dh75,000 1,600m
Winner: Rayig, Pat Dobbs, Doug Watson
4.15pm: Handicap Dh105,000 1,600m
Winner: Chiefdom, Royston Ffrench, Salem bin Ghadayer
4.45pm: Handicap Dh80,000 1,800m
Winner: King’s Shadow, Richard Mullen, Satish Seemar
Company profile
Name: Thndr
Started: October 2020
Founders: Ahmad Hammouda and Seif Amr
Based: Cairo, Egypt
Sector: FinTech
Initial investment: pre-seed of $800,000
Funding stage: series A; $20 million
Investors: Tiger Global, Beco Capital, Prosus Ventures, Y Combinator, Global Ventures, Abdul Latif Jameel, Endure Capital, 4DX Ventures, Plus VC, Rabacap and MSA Capital
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
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IPL 2018 FINAL
Sunrisers Hyderabad 178-6 (20 ovs)
Chennai Super Kings 181-2 (18.3 ovs)
Chennai win by eight wickets
The specs
Engine: 5.2-litre V10
Power: 640hp at 8,000rpm
Torque: 565Nm at 6,500rpm
Transmission: 7-speed dual-clutch auto
Price: From Dh1 million
On sale: Q3 or Q4 2022
Result
6.30pm: Al Maktoum Challenge Round-3 – Group 1 (PA) $65,000 (Dirt) 2,000m; Winner: Brraq, Ryan Curatolo (jockey), Jean-Claude Pecout (trainer)
7.05pm: Handicap (TB) $65,000 (Turf) 1,800m; Winner: Bright Melody, James Doyle, Charlie Appleby
7.40pm: Meydan Classic – Listed (TB) $88,000 (T) 1,600m; Winner: Naval Crown, Mickael Barzalona, Charlie Appleby
8.15pm: Nad Al Sheba Trophy – Group 3 (TB) $195,000 (T) 2,810m; Winner: Volcanic Sky, Frankie Dettori, Saeed bin Suroor
8.50pm: Dubai Millennium Stakes – Group 3 (TB) $130,000 (T) 2,000m; Winner: Star Safari, William Buick, Charlie Appleby
9.25pm: Meydan Challenge – Listed Handicap (TB) $88,000 (T) 1,400m; Winner: Zainhom, Dane O’Neill, Musabah Al Muhairi
If you go
The flights
Emirates flies from Dubai to Funchal via Lisbon, with a connecting flight with Air Portugal. Economy class returns cost from Dh3,845 return including taxes.
The trip
The WalkMe app can be downloaded from the usual sources. If you don’t fancy doing the trip yourself, then Explore offers an eight-day levada trails tour from Dh3,050, not including flights.
The hotel
There isn’t another hotel anywhere in Madeira that matches the history and luxury of the Belmond Reid's Palace in Funchal. Doubles from Dh1,400 per night including taxes.
Killing of Qassem Suleimani
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