Oct 16 2011 |
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Dubai's Enoc Says Fuel Subsidies "Not Sustainable"
Sunday, Oct 16, 2011
(This item was originally published on Saturday.)
DUBAI (Zawya Dow Jones)--Dubai's state-owned fuel retailer Emirates National Oil Co, or Enoc , said Saturday that the continuing burden of providing subsidized fuel to customers in the emirate "is clearly not sustainable or viable for the company."
In an emailed statement, Enoc said high global oil prices has increased the cost to the company of subsidizing fuel. Meanwhile, Enoc said it is seeing increased demand from Dubai motorists following the summer lull.
Enoc said the high cost of fuel subsidies has had a serious impact on the company's ability to expand its retail network in Dubai in order to meet growing demand. It noted that very few service stations have been added to its network recently, and some had to be closed "to undertake infrastructure development work."
Enoc reiterated that it expects to incur a loss of AED2.7 billion in 2011 due to the high cost of providing subsidized fuel.
-Dubai Bureau, Dow Jones Newswires; +9714 3748044; djnews.dubai@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
16-10-11 0402GMT
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