Arab Today, arab today oil marketing companies losing dh165m per day
Last Updated : GMT 22:00:57
Arab Today, arab today
Arab Today, arab today

Oil marketing companies losing Dh16.5m per day

Arab Today, arab today

Arab Today, arab today Oil marketing companies losing Dh16.5m per day

Abu Dhabi - Arabstoday

UAE state oil marketing companies are losing an estimated Dh16.5 million a day on petrol sales as the gap between state-set prices and the cost of imports widens, Gulf News has learnt. \"The petrol grade which sells at Dh1.72 a litre in the UAE needs to be sold at Dh3.16 a litre to reflect its true market price,\" a well-placed source at one of the country\'s oil retailing companies told Gulf News. As matters stand, the oil retailers are losing about Dh6.50 for every gallon of petrol sold with the subsidy being calculated at an average Brent crude price of $115 (Dh422) per barrel. The country\'s petrol consumption is estimated to be slightly higher than five million litres per day. The current pump prices reflect international crude oil prices at about $55 a barrel. Subsidies The four UAE oil retailers — Abu Dhabi National Oil Company (Adnoc), Enoc, Eppco and Emarat bear the subsidies on petrol sales. While the government allowed petrol prices to be revised twice last year, this year there has been no revision of prices, despite sharp rises in international crude and oil product prices. The state oil firms cannot unilaterally revise pump prices without the federal government\'s intervention. Spokespersons for oil companies weren\'t immediately available for comment when contacted by Gulf News. The price of petrol is a sensitive matter as price increases invariably stoke inflationary pressures with producers of goods and services tending to pass on the increase in transportation costs to consumers. The UAE\'s petrol prices are well above those in Saudi Arabia and Oman. Last year, the UAE announced plans to gradually reduce subsidies on petrol, which cost the government hundreds of millions of dirhams a year, until prices match international market levels. While national subsidy figures are not made public, Abu Dhabi has spent an average of $6.5 billion a year on various subsidies in recent years, from water to energy. While Abu Dhabi processes its own crude at its two refineries for petrol, Dubai has to buy all its petrol from outside. Vulnerable When the price of oil in the international markets shoots up, Dubai\'s oil retailers become particularly vulnerable as the difference between the purchase price and the local selling price of petrol widens. \"The high petrol subsidies are draining the UAE economy. The problem will remain until the government allows the petrol prices to be market-linked. The international oil prices are unlikely to come down substantially in the foreseeable future,\" says a local energy expert. He added: \"The people in the UAE can afford to pay higher prices for petrol as the oil prices are relatively low, compared to the standard of living. Only those who fall under the social security net...people with low income and pensioners should get the subsidy on petrol.\"

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oil marketing companies losing dh165m per day Arab Today, arab today oil marketing companies losing dh165m per day

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today oil marketing companies losing dh165m per day Arab Today, arab today oil marketing companies losing dh165m per day

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today A no-frills business success

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israel sees benefits in independent Kurdistan

GMT 07:58 2017 Wednesday ,20 September

Israel sees benefits in independent Kurdistan
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Horia Farghaly happy for success of “Case G”

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 06:31 2017 Saturday ,16 September

Eman Al Assy receives three offers

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 11:40 2017 Monday ,18 September

Russia and Iraq restore air travel

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:56 2017 Friday ,15 September

Apple's grand plan in Ireland held up by a forest

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday