Distribution companies in the UAE welcomed the announcement last week by the Ministry of Energy to deregulate fuel prices starting August 1, 2015, as they seek to expand and modernise their services.
Until the recent announcement, the government provided subsidies to fuel distribution companies to cover the difference between retail and international prices of gasoline and diesel fuel. For example, gasoline in the UAE is currently sold at the pump for USD 0.47 cents per litre, compared to USD 1.10 per litre, or even higher, in other countries.
Adnoc Distribution CEO Abdullah Salem Al Daheri said they are supportive of the new regulation. “It will rationalise consumption of fuel, conserve the environment and protect natural resources for future generations,” Al Daheri said in a press statement.
He said the government decision gives Adnoc the opportunity to expand, as well as upgrade its services. “We are proud to contribute to the economic development of the UAE for a better future and achieve sustainable development in keeping with the vision of our leaders.”
State-owned ADNOC (Abu Dhabi National Oil Co.) Distribution is involved in the marketing and distribution of petroleum products in the UAE, as well as overseas. It operates more than 300 service stations across the UAE, with plans to boost this number to 507 in 2015-2016.
Similarly, Emirates National Oil Company (ENOC) CEO Saif Humaid Al Falasi said the decision will support the vision of the UAE government to ensure sustainable development and rationalise fuel consumption, which will be benefit the environment. “We are committed to all that is contributing to the sustainable and economic development in the UAE. We in ENOC are looking forward to expansion of our projects and setting up more modern stations,” Al Falasi said in a statement.
Owned by the Dubai government, ENOC has more than 30 active subsidiaries and international joint venture operations. The company’s portfolio includes oil refining, oil trading, bunkering, liquefied petroleum gas and aviation fuel marketing. It operates in the Middle East, Asia, Europe and Africa.
Emarat or the Emirates General Petroleum Corp., which was established by the UAE federal government in 1981, had no comment.