Business | Oil & Gas

Firms rule out price hike despite huge loss

Three Dubai-based oil retailers collectively lost more than Dh2 billion last year on petrol sales because the state-controlled prices of the fuel remained at a standstill at a time when global crude oil prices soared to record highs, senior company executives said on Tuesday.

  • By Himendra Mohan Kumar, Staff Reporter
  • Published: 23:39 January 29, 2008
  • Gulf News

Abu Dhabi: Three Dubai-based oil retailers collectively lost more than Dh2 billion last year on petrol sales because the state-controlled prices of the fuel remained at a standstill at a time when global crude oil prices soared to record highs, senior company executives said on Tuesday.

Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco) and Emarat are more susceptible to spikes in crude prices since they buy gasoline at market rates from multiple sources.

In contrast, Abu Dhabi-based Adnoc Distribution sells fuels sourced entirely from the Abu Dhabi National Oil Company (Adnoc), the UAE's main crude oil producer and refiner.

A spokesman for Enoc and Eppco said despite incurring a combined loss in excess of Dh1 billion in 2007 on gasoline retailing, the two companies will keep petrol prices unchanged.

"Enoc and Eppco have no intention of increasing petrol prices at their retail service stations," he said. He also denied speculation that petrol prices may go up to Dh11 per gallon.

"We have not talked to the authorities on this issue at all, recently," said the spokesman for Enoc and Eppco.

A spokesman for Emarat said that in the current scenario, the more they sell the oil product, the more they lose money, but it was up to the government to decide on the price.

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