No hike in UAE petrol prices

Government will continue to foot fuel subsidy bill, believe experts

Petrol prices in the UAE will not change despite the shortage being faced by a section of state-owned fuel retailers, according to oil industry sources in the country.

The government will continue to subsidise the state-set prices despite mounting costs, reported 'Gulf News'.

Adnoc Distribution, Enoc, Eppco and Emarat are paid by the government to cover the cost of subsidies, it added.

Emarat to buy petrol from world markets

Emirates General Petroleum Corporation (Emarat) has launched a programme to buy petrol from the world market in large quantities, according to Abu Dhabi-based Arabic newspaper 'Al Ittihad'.

The programme has been launched in accordance with a contingency plan to cope with the crisis facing the market in light of the continued deadlock in both Enoc and Eppco petrol stations.

An official source at Emarat confirmed "the company is moving within the programme for the purchase of petrol from different markets".

He said Emarat recently signed a contract to buy 100 tonnes of petrol, which will be supplied directly to the ports of the country from June to September.

He stressed that the sales of petrol at some stations were doubled especially after te shortage faced by Eppco and Enoc in Sharjah and Northern Emirates. 

 Total fuel for Emarat

Meanwhile, Reuters reported oil major Total has won a tender issued by the UAE fuel retailer Emarat to buy an extra 100,000 tonnes of petrol from June to September, according to traders. 

Total will be paid a $9 premium to the average monthly Brent price, a trader said.

The specification is for high-octane 95 Ron gasoline and for around 25,000 tonne cargoes with the option of delivery into Sharjah, according to a copy of the tender document seen by Reuters.

Emarat also has term contracts in place with BP and Vitol.

Fuel shortage

Petrol stations in Sharjah and the Northern Emirates have experienced fuel shortages this month and traders said this has likely increased demand and prompted the tender.

While the government allowed petrol prices to be revised twice last year, this year there has been no revision despite sharp rises in international crude prices. The state oil firms cannot unilaterally revise pump prices without the federal government's approval.


 

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