ENOC seeks end to petrol price limits

11 January 2010

Dubai-based Emirates National Oil Company (ENOC) has said it has suffered months of losses as a result of rising costs for crude oil, and called for an end to federal price limits on petrol prices, The National has reported. The federal government should either offer direct subsidies for retailers to cover their losses or let the petrol price rise, ENOC's chief executive, Saeed Khoory said. The state-owned firm buys a large portion of its crude oil on the open market, where prices have nearly doubled in the last 12 months. But the retail price is fixed at Dhs1.37 (37.3 cents) per litre of special petrol, or Dhs6.25 a gallon. At this price, the company is losing money with every sale at its 170 service stations, Khoory said.

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