Sharjah warns ENOC of legal action in fuel shortage

Author: 
REUTERS
Publication Date: 
Sat, 2011-06-25 00:54

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, the report 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 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 UAE 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 Co. (ENOC) and its arm Emirates Petroleum Products Co. (EPPCO).

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