ADNOC will use profit from higher fuel prices to add 125 new service station to its existing network, according to a company official.
ADNOC Distribution CEO said in a statement that the company will use minor profit margin accrued from the deregulation of prices to increase the number of service stations it operates, which currently stands at 386.
The announcement came after the UAE’s Ministry of Energy announced revised fuel prices for August 2015, with gasoline becoming more expensive, and diesel less expensive than earlier.
“When setting the new prices, we have considered international prices as the benchmark and include an added operation cost and minor profit margin,” said Abdulla Salem Al Dhaheri, CEO of ADNOC Distribution.
“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.
The price of diesel currently retails at AED2.90 in Dubai and the northern emirates, including Sharjah, Ajman, Umm Al Quwain,Ras Al Khaimah and Fujairah. The current price of diesel in Abu Dhabi is AED2.35.
Al Dhaheri commented: “Given the prevailing global prices, it was a real challenge for ADNOC Distribution to cut down diesel prices that have been reduced by 29%.
“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.”
