Adnoc to use minor profit for expansion

The UAE has the most competitive oil prices even though they have been deregulated, the chief executive officer of Adnoc Distribution said.
"Although the fuel prices have been deregulated, we still maintain one of the most competitive prices in the region and the world at large, when factoring in the per capita spend on fuel in comparison to the average income of individuals," Abdulla Salem Al Dhaheri said.
"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 said "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 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, he said.
The decision will also allow Adnoc Distribution to enhance the quality of products and services and deliver an improved customer experience via its service centres in the long-term.
Al Dhaheri said that 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.
- haseeb@khaleejtimes.com