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Wed 20 Apr 2011 10:22 AM

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Emarat petrol stations run dry in supply shortfall

Motorists turned away as ‘logistical problem’ sparks fuel shortage across Dubai

Emarat petrol stations run dry in supply shortfall
Petrol pumps at Emarat stations across Dubai have run dry after delivery problems at the company’s depots hit fresh fuel supplies
Emarat petrol stations run dry in supply shortfall
Emarat petrol stations run dry in supply shortfall

Petrol
pumps at Emarat stations across Dubai have run dry after delivery problems at
the company’s depots hit fresh fuel supplies, station managers told Arabian
Business.

After three
days without supplies, workers said they have been forced to turn motorists
away.

Only a few
stations have received a limited amount of fuel, one manager said.

“We cannot
answer how long it will take [before fresh supplies are delivered]. It depends
on how long they take to solve the problems at the supply depots,” he said.

“We’re
calling and asking other stations if they have supplies and sending people
there.”

It’s the
latest in a series of fuel shortages for government-owned Emarat. The company in
September blamed logistical and technical failures for supply problems.

Rival gas
station operator Enoc said the shortage had put added pressure on its outlets
to meet increased demand.

“The only
challenge we’re facing is the transportation of the fuel. It’s putting an extra
load on the system. There are currently only 47 trucks supplying 170 stations all
across Dubai,” said Khalid Hadi, director of brand and corporate communication
at Enoc.

“With
regards to Enoc and Eppco, there are no issues with supply, the product is
available.”

The UAE, the world's third largest exporter of crude oil,
has long subsidised fuel prices in an effort to cut living costs for residents,
a move that costs the state hundreds of millions of dollars a year.

Emarat said in January it was restructuring and needed bank
loans because it must sell gasoline at below-market prices. Chairman Obaid
Humaid Al Tayer said there is a one dirham gap between the cost and selling
price of a litre of fuel.

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Ed 8 years ago

Considering that Emarat is losing financially on each liter of fuel they sell, stop selling fuel would be a better business proposition than selling fuel; EPPCO and Enoc could follow soon. The whole system of subsidizing does not look sustainable.

I think a sustainable solution is needed quick here!

Anonymous 8 years ago

I went to an Eppco in Sharjah this morning that was out of Special. I have lived in this country for 10 years and cannot recall petrol stations ever running out? What is going on?

Mohamed Baswaten 8 years ago

Its one way of encouraging motorists to use alternative means of transportation - The Dubai Metro?

Baswaten,
Toronto.