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FINANCIAL NEWS
UAE’s Enoc forecasts 2011 loss at USD734m
16 Oct 2011
(MENAFN) Emirates National Oil Company (Enoc) said that in 2011, the company would be forecasted to post a USD734 million loss resulting from providing subsidized fuel to clients, reported Gulf News.
The company added that UAE state oil marketing firms lost around USD4.49 million on a daily basis on petrol sales since the difference between state-set prices and the cost of imports went up.
It also said that the company had to pay for higher global fuel prices and at the same time, it had to distribute fuel at subsidized rates, which hampered Enoc’s business.
It is worth noting that the petrol grade which sells at USD0.46 per liter in the country, must be sold at around USD0.84 per liter to reflect the true market price, meaning that oil companies are losing more than USD1.63 for each gallon of petrol they sell.
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