http://www.thenational.ae/business/energy/enoc-selling-petrol-at-a-loss-cannot-continue Enoc: selling petrol at a loss cannot continueApril Yee Oct 16, 2011 Selling petrol at a loss because of the federal cap on prices is unsustainable, and is hampering its ability to open new outlets in Dubai, Emirates National Oil Company said yesterday. Enoc has struggled to supply fuel to drivers in the Northern Emirates, and says the cap is now threatening its ability to do its job on its own home turf. The company, which is owned by the Dubai Government, said it was on track to record a Dh2.7 billion loss from selling fuel at artificially low rates."This also has a serious impact on our ability to expand our retail network to meet the growing demand," the company said. "The current scenario, where Enoc has to bear the burden of higher international fuel prices while at the same time distributing fuel at subsidised rates, is clearly not sustainable or viable." Enoc's statement was the latest plea for help from fuel retailers caught between high oil prices and the UAE's effort to keep the cost of living in check. Retailers such as Enoc and its competitor Emarat, which is owned by the federal Government, are required to sell petrol at a federally capped retail price of Dh1.61 a litre for the lowest fuel grade. The price went up twice last year, by a total of 28 per cent, but they still sell at a loss. Saeed Khoory, the chief executive of Enoc, has said they lose money on petrol sales when global crude oil prices rise above US$45 a barrel. Brent crude reached $126 in April amid regional unrest and the shutdown of supplies from Libya. Prices have relaxed only slightly in spite of the prospect of renewed pumping, closing on Friday at $115.50.
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