Abu Dhabi: National oil company Adnoc is poised to take over the running of Eppco and Enoc petrol stations in the northern emirates, Gulf News has learnt.
Sources in the oil sector said that the UAE Government is moving to cancel licences owned by Eppco and Enoc in the northern emirates and allow the Abu Dhabi National Oil Company (Adnoc) to take over the running of the service stations.
They added that Adnoc has shown a high degree of interest in the matter and it will manage and run all the stations previously run by both companies.
Meanwhile, Eppco and Enoc are pressing the government to allow them to raise fuel prices, sources said.
The two companies say that the cap on prices is leading to massive losses due to rising crude oil prices on world markets.
Government sources said that both companies have released statements indicating their financial losses during the first half of 2011.
Emirates Petroleum Company (Emarat) was suffering similar losses until the UAE Cabinet increased the company's capital to about Dh9 billion at the end of last month.
They added that Eppco and Enoc have submitted reports to the Ministry of Finance and Industry recommending lifting the fuel price cap and letting the market decide what is a fair rate for fuel in the UAE.
They admitted, however, that lifting the ban may result in a tripling of the price of petrol, from around Dh6.80 per gallon to around Dh18.50.
The companies made their case at a secret meeting in Abu Dhabi last week that was attended by several officials from the Ministry of Finance and Industry.
At the meeting, the Ministry of Finance suggested that a fuel allowance of about Dh2,000 per month for UAE nationals would balance out the potential increase in fuel prices for families.
But sources told Gulf News that the suggestion was strongly rejected by government officials.