Adnoc fuel retailing stations launch in Dubai to take two years
When ready, stations will operate alongside other local fuel retailers in Dubai
Abu Dhabi: It may take up to two years for the first fuel retailing station of Adnoc Distribution to open in Dubai, a top-ranking oil industry source told Gulf News by telephone. “Adnoc doesn’t want to enter the Dubai market in a big way.
They will take some strategic locations and build a few pumps in Dubai. We may see 2-3 Adnoc stations in two years time and after 5 years, there may be 10 Adnoc stations operating in Dubai,” said the oil industry source.
He said Adnoc stations in Dubai, when operational, will operate alongside the other local fuel retailers — Enoc, Eppco and Emarat.
As matters stand, the Dubai fuel retailers Enoc, Eppco and Emarat buy petrol at prevailing international prices and sell the fuel at subsidised rates to consumers, as mandated by the UAE government.
On the other hand, fuel sales by Adnoc Distribution in the Emirate of Abu Dhabi as well as Sharjah, Fujairah, Ras Al Khaimah, Ajman and Umm Al Quwain are fully subsidised by the Abu Dhabi government.
The Dubai oil retailers are estimated to incur a combined loss of about Dh6 billion in 2012 due to the gap in international prices and the local selling prices of petrol, the oil industry source added.
