Emirates National Oil Company (ENOC) has called for an end to controls on petrol prices, saying it has been hit financially by rising costs for crude oil.
Removing caps on fuel prices would result in increases at the pump for motorists as current prices are set far below the rate the company needs to break even on its fuel sales, UAE daily The National reported on Monday.
Saeed Khoory, the company’s chief executive, told the paper that it is losing money with every sale at its 170 service stations in the UAE while the price is fixed at AED1.37 per litre.
The UAE Government should either offer direct subsidies for retailers to cover their losses or let the petrol price rise, he said.
“Freeing the price is the best solution for the UAE,” he said, adding that the government should model a new pricing mechanism after diesel, which is not subject to a cap.
ENOC is currently working on plans to introduce self service at its service stations, with attendants still being employed but at an extra cost to consumers.
Follow us on
