Tuesday, Jul 05, 2011
DUBAI (Zawya Dow Jones)--Dubai's state-owned fuel retailer Emirates National Oil Co., or Enoc, said Tuesday it had not received any offers from companies interested in taking over some of its retail outlets shut amid an ongoing fuel shortage.
"There has been no expression of interest by any organization on taking over the operations of the company's retail outlets," Enoc said in an emailed statement.
The fuel retailer had closed recently some of its service stations in parts of the United Arab Emirates citing maintenance work. A report Tuesday in the local press said the U.A.E. government was moving to cancel Enoc's operating licenses in the northern emirates and allow Abu Dhabi National Oil Co., or Adnoc, to take over, a claim Enoc said it "categorically denies."
"The concerned authorities are actively discussing the matter of fuel distribution in the northern emirates," Enoc said.
The U.A.E. government has capped the gasoline price at 1.72 U.A.E. dirhams ($0.47) a liter, but Enoc has to import the fuel at international market prices, while Adnoc can sell gasoline it refines from its own crude oil.
Enoc said in April the cost of meeting the subsidized price of fuel was expected to reach AED2.7 billion in 2011.
Debt-laden Dubai has said it is working to reduce its level of spending.
-By Angus McDowall of Dow Jones; +971-4-446-1685, angus.mcdowall@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
05-07-11 1329GMT
