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Late night surprise

http://gulfnews.com/business/oil-gas/ad ... s-1.833183

Now only if Dubai allowed in Adnoc aswell, I prefer Adnoc over both Emarat and Enoc/Eppco. I can't believe Enoc is whinging again to raise prices to almost 19 bucks ! Emarat got a shot in the armfor 9 billion so they are quite for now.

A thought comes to mind, would'nt it also better instead of dishing out such massive subsidies to actually invest in a refinery ?

BTW anyone else notice that ENOC gas just doesn't seem to last as long as Adnoc or Emarat. I've been noticing this for the past few years and now only if I HAVE to will I use ENOC/Eppco.

desertdudeshj wrote:Late night surprise

http://gulfnews.com/business/oil-gas/ad ... s-1.833183

Now only if Dubai allowed in Adnoc aswell, I prefer Adnoc over both Emarat and Enoc/Eppco. I can't believe Enoc is whinging again to raise prices to almost 19 bucks ! Emarat got a shot in the armfor 9 billion so they are quite for now.

A thought comes to mind, would'nt it also better instead of dishing out such massive subsidies to actually invest in a refinery ?

BTW anyone else notice that ENOC gas just doesn't seem to last as long as Adnoc or Emarat. I've been noticing this for the past few years and now only if I HAVE to will I use ENOC/Eppco.

What they proposed would lead to half the businesses suffering badly. Of course ENOC/Eppco would enjoy it and probably hand out bonuses !

-- Tue Jul 05, 2011 9:04 am --

desertdudeshj wrote:
A thought comes to mind, would'nt it also better instead of dishing out such massive subsidies to actually invest in a refinery ?

That is the most obvious solution; the fact that is so obvious and hasnt been done means there is a reason behind it, just try thinking about it and you will know

If they tripled the cost of fuel here, it would destroy the economy in a few short months. Cheap labour and logistics costs are a couple of the reasons that make this a desirable market for investment, take these away and it will kill it surely as a shot to the head.

The report in Gulf News further went on to say that ENOC/EPPCO had approached the ministry in Abu Dhabi to appeal for the price hike, yet they would then give UAE NATIONALS an AED 2000 per month allowance to ease the burden!

Everyone else would have to pay through the nose.

Radio 2 news this evening then reported a disclaimer from ENOC/EPPCO saying they had not been approached 'by any outside organisation' to take over their retail supply chain in the Northern Emirates...

The crude thickens.



Knight

Could be a bluff which went wrong on their part ? Stop supply, create more demand and then hike price. Instead others didn't play ball.

I dunno why, but I'm quite happy at Enoc getting knocked ?

Having ENOC closed in Sharjah and other emirates will only do them (ENOC) a BIG FAVOUR.
Let them focus on their good business in Asia rather than failing to provide people services here.

Just exactly the same as all the utilities, fuel distribution is the privilege of the few in the UAE who’s prices are capped by the Federal Government, and as soon as they decide we shall pay more, we shall.

EPPCO/ENOC talk about removing the Government cap and allowing the market to find it’s best price, I don’t see how this can be achieved without competition, more like the current distributors will decide the ‘best price’ between them, true market value wouldn’t be achieved unless the independents were allowed to trade in the UAE as well. Even if this was allowed to happen, I’m sure we would all be paying considerably more for petroleum products than we do today.

We’re at the mercy of the Federal Government as we have been all along, no matter who’s badge is on the fuel pump, and if they decide ADNOC will assume control over EPPCO/ENOC, they will.

If ADNOC takes over, prices will surely be stable.

What I dislike the most is that they never consider the public's opinion.
What do few people (10%) have to worry about?? Its us the majority (90%) that are really concerned.

symmetric wrote:If ADNOC takes over, prices will surely be stable.

What I dislike the most is that they never consider the public's opinion.
What do few people (10%) have to worry about?? Its us the majority (90%) that are really concerned.

ADNOC will conform to the policies and prices dictated to them by the Federal Government, as they do today, and I'm sure they do consider their public's opinions, more often than not, such press releases are delivered to test the waters of public opinion.

Dubai Knight wrote:If they tripled the cost of fuel here, it would destroy the economy in a few short months. Cheap labour and logistics costs are a couple of the reasons that make this a desirable market for investment, take these away and it will kill it surely as a shot to the head.
Knight

Almost every economist is claiming the opposite; that increasing the price will lead to more people using public transport, a better economy, companies will become more efficient, and that prices will find their market value and all will be well

Look at what happened in Europe in the 1970's when the Saudis and OPEC held the world to ransom and the price of fuel went through the roof.

Raging inflation
Mass layoffs of workers as companies tried to economise
Bankrupt companies by the hundred
Strikes
Lock-outs
The death of the airline industry

What they forget is that public transport also requires fuel to operate and, if the price is high, the public will find alternative methods. There is also the essential requirement of a network that actually goes to and from the places people want to go. They already tried to ban car sharing to drive the lower paid workers onto public transport.

Time to drive from Al Nadha to Dubai Media City is approximately 30 minutes. The same trip by bus takes over 2 hours.

The Dubai mass transit system goes nowhere near the places where large numbers of people need to get to and from. There is no service from Sharjah (or any planned!) to Jebel Ali or Al Quoz or Al Qusais for the simple reason that the powers that be in Dubai do not want the lower income drones living in Sharjah or Ajman at sensible rents and having all their expensive glass and concrete white elephants standing empty.

The latest business forecast is that, by the end of 2011, 50% of the available office space in Dubai will be standing empty. They have no available figures for the residential spaces.



Knight

Dubai Knight wrote:Look at what happened in Europe in the 1970's when the Saudis and OPEC held the world to ransom and the price of fuel went through the roof.

Raging inflation
Mass layoffs of workers as companies tried to economise
Bankrupt companies by the hundred
Strikes
Lock-outs
The death of the airline industry

Most People realize that; however many economists live with their heads in the clouds, and in their world all subsidies are evil and so if the govt removes subsidies, everything will be fine "in the long run", i hate that phrase btw.