Diesel shortage hits Abu Dhabi

Abu Dhabi: A diesel shortage affected many sectors in Abu Dhabi on Monday, with trucks stuck in massive queues waiting to refuel.

Households and restaurants suffered due to a lack of a supply of essential items. The transportation of labourers from worksites to their accommodation was also affected.

Diesel vehicles have had to queue at fuel stations in Mussaffah since Sunday morning, as the sale of diesel was stopped in Abu Dhabi City.

Adnoc Distribution, the fuel retailing subsidiary of Abu Dhabi National Oil Company (Adnoc) took the measure to avoid traffic congestion in the city, petrol station staff told Gulf News. But, even after repeated attempts, Adnoc Distribution was not available for official comment.

The huge difference in diesel prices between Abu Dhabi and Dubai has caused massive queues at Adnoc Distribution diesel pumps, where Dubai-registered vehicles queue up for cheaper diesel.

The latest price increase in Dubai on June 30 widened the diesel price gap in Dubai and Abu Dhabi to almost 123.84 per cent. Dubai oil retailers, Emirates National Oil Company (Enoc), Emirates Petroleum Products Company (Eppco), and Emarat sell diesel at Dh19.25 per gallon whereas Adnoc Distribution sells at Dh8.60 per gallon.

The three Dubai oil retailers buy diesel at international prices and then adjust the local prices, based on the landed cost of the oil product.

Abu Dhabi, due to having its own crude oil supplies and refinery, has been able to keep fuel prices steady at Dh8.60 a gallon.

Cancelled trips

Long queues were visible since yesterday early morning at fuel stations in Mussaffah, about 25 to 30 kilometres away from Abu Dhabi City.

Stephen, a driver for a drinking water carrier said he had been receiving calls from customers since the early morning but was unable to deliver about 200 five gallon water bottles.

"I have been in the queue since early morning and I am not sure when I will get the diesel," he said.

Fuel station staff said diesel had run out in the afternoon and they were waiting for new stock. The driver said his company's 70 vehicles were on duty in Abu Dhabi and almost all them were affected by the diesel shortage.

"Up until Sunday we used to get diesel after a one hour wait", he said.

Naseen Jan Khan, a driver of a pick-up which transports vegetables to several restaurants and hotels in Abu Dhabi said his vehicle had been held up in the queue since early on Monday morning.

Gulbadsha who transports labourers from the city to Taweela in his minibus said he already cancelled one trip in the afternoon. Three drivers were not sure about their next trips as they were behind 100 vehicles in the queue.

The situation was even worse at another station in Mussaffah where about 400 vehicles were queuing. Ebrahim, whose minibus transports labourers from Mussaffah to Abu Dhabi City said he had already cancelled trips during the midday break for labourers.

Bus service disrupted

Many of the minibuses that travel between Abu Dhabi and Dubai were held up in long queues waiting for diesel in Abu Dhabi, causing disruption to several trips, said transport staff.

"A minibus used to leave Abu Dhabi bus station to Sharjah every 20 to 30 minutes. But sometimes it has been delayed up to one hour."

The drivers of buses which run between Abu Dhabi and Dubai also said that the diesel shortage would affect them if it was not sorted out soon.

"No trip has been cancelled yet", said a bus driver yesterday evening.

The newly-introduced buses in Abu Dhabi City also suffered a short delay in the morning due to a shortage of diesel, employees told Gulf News.

"Among the two designated fuel stations for buses, one did not have enough stock, but we solved the issue in the morning,"they said.

Are you affected by the diesel shortage? Do you think the shortage has been caused due to a difference in price? How can the issue be resolved in the near future? Tell us at letter2editor@gulfnews.com or fill in the form bellow to send your comments.

Yes, This happened only for the price difference.
ramesh kanjiramkat
Abu Dhabi,UAE
Posted: July 15, 2008, 12:06

There is no solution if the UAE government allows such a big difference in price.
Justin
ABU DHABI,UAE
Posted: July 15, 2008, 11:22

ADNOC failed to have long term plan to accommodate the growth of the country with lots of new projects. They probably produce same capacity as last year and year before while consumption increases.I dont think its vehicles coming from other emirates causing this, unless there are people buying in drums and sell them in black market.
al-boasy
Abu Dhabi,UAE
Posted: July 15, 2008, 09:14

I fail to understand one point. When you have local manufacturing facilities and a huge shortage at home, what is the point in going for exports and having a huge inflationary tendency at home? This is what many of the Asian countries have realized in terms of food commodities.Why can there not be a central regulatory body determining prices all across the country, averaging them to ensure costs are recovered.
Rajesh A
Dubai,UAE
Posted: July 15, 2008, 08:30

Enoc can have a contract with Adnoc and buy Diesel at 8.60 and distribute it through their channels. These will solve lot of problems and congestions in Abu Dhabi. Many people consider it as an opportunity to make it a business to buy diesel. All Petrol Pumps in Abu Dhabi are congested.
Ravi
Abu Dhabi,UAE
Posted: July 15, 2008, 07:48