Business | General

Petrol price in the UAE may come down as Adnoc acquires 74 Emarat stations

The takeover by Adnoc units will enable Emarat to cut its losses, says top oil industry source

  • By Shehab Al Makahleh and Himendra Mohan Kumar, Staff Reporters
  • Published: 11:34 May 28, 2012

Signing of the memorandum of understanding
  • Image Credit: WAM
  • The memorandum of understanding between Adnoc Distribution and Emarat was signed in the presence of Dr Obaid Humaid Al Tayer, Minister of State for Financial Affairs and Emarat’s Chairman, and Abdullah Nasser Al Suwaidi, Adnoc Director General and Chairman of the Board of Directors of Adnoc Distribution, in addition to a number of officials. Abdullah Salem Al Daheri, General Manager, Adnoc Distribution and Adel Khalifa AL Shaer, Acting General Manager of Emarat, signed the agreement.
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Abu Dhabi: Petrol prices in the UAE may decline following the Abu Dhabi National Oil Company's (Adnoc) decision to acquire 74 petrol pumps belonging to Emarat in Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah, an Abu Dhabi government official told Gulf News yesterday.

Emarat's operations in Dubai will not be affected.

The reduction of the price will come as a reaction to the recent calls by some Federal National Council (FNC) members, who urged the government to bring petrol prices in line with those in the rest of the GCC nations

Numan Ashour, a UAE-based economist

Petrol is sold at a fixed price in the UAE, which has reserves of 97.8 billion barrels of crude. The government provides subsidies to retailers when the oil price crosses the break-even level. However, petrol in the UAE is expensive compared to other Gulf Cooperation Council countries.

Three retailers, Adnoc Distributors, Emarat and Emirates National Oil Company (Enoc) and its subsidiary Emirates Petroleum Products Company (Eppco) meet the domestic demand for petrol in the UAE.

FNC calls

"The reduction of the price will come as a reaction to the recent calls by some Federal National Council (FNC) members, who urged the government to bring petrol prices in line with those in the rest of the GCC nations," Numan Ashour, a UAE-based economist told the Gulf News.

"The prices of fuel will be reduced and the government will partially subsidise fuel prices," he added.

A top-ranking oil industry source told Gulf News that the takeover by Adnoc units will enable Emarat to cut its losses. "Emarat is losing Dh80 million in the Northern Emirates section of its petrol sales business every month due to petrol subsidies. This deal means Emarat will save at least Dh900 million every year."

He added that the Abu Dhabi government subsidises Emarat's petrol sales.

Ashour also said this move followed recommendations by the FNC and studies by committees which analysed the hindrances to foreign investments. Prices of oil and fuel in the UAE topped the list.

He reiterated that after the meeting of the GCC states recently, the issue was that the UAE fuel prices are much higher than its counterparts in the Gulf region which has created a common market in 2008. 

Comments (6)

  1. Added 18:02 May 28, 2012

    Emarat and Adnoc served as the only refuelling source for residents of Sharjah & Northern Emirates since last year. There are many of us who still have retained Eppco cards and manages to refill from Dubai stations in hope that closed Eppco/Enoc stations would re-open one day. With new acquisitions; It would depend largely on Adnoc marketing strategy as to how they manage the new brand. Eppco maybe the next to be acquired or maybe not. Time will show how things move ahead. It was a wise decison made at this time by Emarat rather than waiting till what happened with Eppco stations. It could be a shock for those who are regular users of these stations. People who are inspired of Emarat products and services could be more of concern as to what will be added or shut down at these outlets. For Eppco card drivers; these stations would still remain an option to refill against cash.

    Shahzad Khan, Sharjah, United Arab Emirates

  2. Added 16:08 May 28, 2012

    WoooHooo !!! This is great news indeed for the residents and citizens of the northern emirates. Now there will be cheaper fuel, clean toilets, resonably priced F&B and of course Air Filling Stations in "working condition" Thank You ADNOC

    joel dlima, dubai, United Arab Emirates

  3. Added 15:59 May 28, 2012

    Atleast there would be more stations now accepting credit card. One wouldnt have to line up at an ATM before going for a refill. Hope they take over the operations in Dubai as well. With retails companies claiming billions of dirhams in losses (which they claim to subsidize), I wonder how much they save annually by not accepting credit cards. And why cant a mechanism be put into place to differentiate between a credit or a cash sale.

    Faisal, Dubai, United Arab Emirates

  4. Added 14:25 May 28, 2012

    It doesn't make any difference as it is already running, if Adnoc had acquired Eppco/Enoc across northern emirates it would be great news as it is shut since a year or so.

    Shalu, Sharjah, United Arab Emirates

  5. Added 14:22 May 28, 2012

    Does that mean Emarat will also sell petrol at cheaper pice like E+ from Adnoc? I hope they do!!

    haq, sharjah, United Arab Emirates

  6. Added 14:21 May 28, 2012

    It is a very welcome move. People in Sharjah will be relieved of the mental and physical stress of refueling before reaching Sharjah.

    Damodhar Mata, Dubai, United Arab Emirates

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