Enoc says heavy subsidies not sustainable
Dubai, October 15, 2011
Dubai-owned Emirates National Oil Company (Enoc), hit by fuel shortages earlier this year, said it could not sustain the sale of fuel at heavily subsidized prices while its costs were high on international markets.
"The current scenario, where Enoc has to bear the burden of higher international fuel prices while at the same time distributing fuel at subsidized rates, is clearly not sustainable or viable for the company," it said in a statement.
"Enoc looks forward to the support of the concerned authorities in addressing the concern."
Enoc has said it faces a loss of Dh2.7 billion ($735.1 million) this year. Petrol stations in the northern emirate of Sharjah were shut down for weeks due to a shortage.
The shortage, the third in 10 months, came after Enoc and Eppco, both operating at a loss due to federal fuel subsidies, refused to supply Sharjah, industry sources and analysts have said.-Reuters