Sharjah warns Enoc of action over fuel shortage
Dubai, June 24, 2011
The UAE emirate of Sharjah has warned Dubai-government owned oil firm Enoc group of legal action and closure of stations operated by the group if it does not comply with a directive to open petrol stations, a newspaper reported on Friday.
The Sharjah executive council had been given the directive to take legal action if Enoc group does not meet the council's demand to open petrol stations across the emirate, Gulf News quoted a Sharjah government source as saying.
The paper said 82 stations in Sharjah, Ajman, Umm al-Quwain, Ras al-Khaimah and Fujairah remained closed.
Sharjah's executive council had given Enoc group until June 24 to resume operating its fuel stations there, the state news agency reported on Wednesday.
A fuel shortage in Sharjah, one of the seven United Arab Emirates, has also spread to other northern emirates such as Umm al Quwain.
The Abu Dhabi National Oil Company (Adnoc) had plans to send additional petrol shipments to Ras al-Khaimah to boost petrol supplies to the northern Emirates to meet soaring demand and ease pressure on its pumps, local media reported this week.
The world's third largest crude oil exporter is facing its third fuel shortage in the past 10 months that is now in its fourth week.
Authorities have struggled to explain the cause of the shortage. They first blamed it on maintenance work but analysts point to government subsidies for petrol, which have ballooned due to soaring oil prices in order to comply with fixed prices that deliver fuel to customers at a cheaper price.
Enoc group is the parent company of fuel retailers Emirates National Oil Company (Enoc) and its arm Emirates Petroleum Products Company (Eppco).-Reuters