Abdulla Salem Al Dhaheri, CEO of ADNOC Distribution has 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 1 August, 2015.
"This can be largely attributed to the solid economic foundations established by our wise leadership and its directives to provide a competitive environment with zero taxes on income and expenditure making the UAE module unique and attractive." he added.
Al Dhaheri further elaborated when setting the new prices, "we have considered International prices as the benchmark and include an added operation cost and minor profit margin. 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."
Al Dhaheri added given the prevailing global prices, it was a real challenge for ADNOC Distribution to cut down diesel prices that have been reduced by 29 per cent. The decision to reduce diesel prices has 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."
He concluded with the announcement of new prices, ADNOC Distribution confirms the readiness of its employees to meet public demand for a variety of fuel products via its state-of-the-art infrastructure facilities and advanced network of service stations. ADNOC Distribution currently operates 386 service stations across the UAE. "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," Al Dhaheri said.