According to a Gulf News Report, petrol prices in the?UAE ?is likely to remain unchanged as the UAE government will continue to subsidise the state-set prices amid rising costs. As per the report, the?oil companies in the country?cannot unilaterally revise? prices without the federal government?s approval.
As the difference between state-set prices and the cost of imports are increasing, the UAE oil marketing firms are losing around Dhs 16.5 million ($4.5 million) a day on petrol sales, the report said.
The government pays oil retailers – Adnoc Distribution, Enoc, Eppco and Emarat – to cover the cost of subsidies.
While Adnoc Distribution’s subsidies are directly borne by the Abu Dhabi National Oil Company, Emarat’s operating budget is approved by the Ministry of Finance with additional subsidies borne by the Abu Dhabi government. The cost of subsidies for Enoc and Eppco is borne by the Dubai government, the paper said.