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Tue 28 Jul 2015 08:23 PM

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ADNOC says deregulation profits will fund 125 new service stations

Distribution arm of Abu Dhabi National Oil Company reveals major expansion plan on back of UAE's change in petrol pricing policy

ADNOC says deregulation profits will fund 125 new service stations

The distribution arm of Abu Dhabi National Oil Company (ADNOC) said on Tuesday that it plans to open more than 100 new fuel stations using the profits accrued from the deregulation of prices which starts on Saturday.

The company, which currently operates 386 service stations across the UAE, said it plans to expand with a further 125 service stations.

"The company will utilise the minor profit margin accrued following the deregulation of the fuel prices to add 125 new service stations that will provide value-added and convenience-enhanced services to customers in the UAE," said Abdulla Salem Al Dhaheri, CEO of ADNOC Distribution in comments published by news agency WAM.

He also said that the UAE still maintains one of the most competitive prices in the region and the world at large in terms of per capita fuel spending compared to the average income of individuals.

Al Dhaheri was commenting on the announcement by the Ministry of Energy to deregulate fuel prices with effect from August 1.

"The new direction of deregulating the prices will allow ADNOC Distribution to leverage its expansion plans to meet the rising demand for petroleum and allied products by the public in line with the sustained urban growth the UAE is witnessing across all regions. The decision will also in the long-term allow us to enhance the quality of products and services and deliver an improved customer experience via our service centres," he added.

Earlier on Tuesday, motorists discovered that they will have to pay on average more than 20 percent more for petrol in the UAE following a decision to deregulate gasoline and diesel prices.

Prior to the change, retail prices ranged between AED1.61 per litre for Gasoline E Plus and AED1.83 per litre for Unleaded Gasoline 98, with Unleaded Gasoline 95 costing AED1.72 per litre.

According to an announcement by the UAE's Ministry of Energy on Tuesday, the first retail prices under the new policy will be as follows:

Unleaded Gasoline 98: AED2.25 per litre (up 22 percent)

Unleaded Gasoline 95 AED2.14 per litre (up 24 percent)

Gasoline E Plus: AED2.07 per litre (up 28 percent)

Diesel: AED2.05 per litre (down by 29 percent)

Al Dhaheri added that it was a "real challenge" for ADNOC Distribution to cut down diesel prices, adding that the decision had been taken in public interest with the aim of supporting the national economy and ensuring its global competitiveness.

"We are confident that the move will positively impact our economy, and will in turn reduce the operational costs across a wide range of pivotal sectors including industries, transportation, shipping among others."

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Mosa 4 years ago

I have a 1.8 Litre 4-Cylinder vehicle, my full tank is 45 litres, I refuel 8 times a month.

Considering the Dhs 0.42 increase in the price of SPECIAL fuel, I will be paying Dhs 151.20 more every month, and around Dhs 1,800 per year.

This is not 'slight'.