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Sharjah: Trucks and heavy vehicles have been lining up at stations managed by Abu Dhabi National Oil Company (Adnoc) in recent days because diesel there is 41 per cent cheaper than at other outlets.
"Truck drivers can save up to Dh300 every time they fill their tanks from this station," an attendant at the Al Khan Adnoc Fuel Station in Sharjah told Gulf News.
The attendant, who spoke on condition of anonymity, said: "There is no restriction on the amount of fuel we sell or the number of times the truckers can fill their tanks. The only limitation is the capacity of our underground tanks, which can fill up to 300 trucks at one go," he said.
On Wednesday, the price of diesel was increased from Dh14.35 per gallon to Dh14.6 in all Enoc and Emarat petrol pumps. This means a truck driver pays up to Dh6 less per gallon if he fills at Adnoc stations.
The UAE has three government companies that distribute fuel products. Enoc and Emarat operate in Dubai and the Northern Emirates while Adnoc operates mainly in Abu Dhabi.
Both Enoc and Emarat offer diesel at commercial rates which fluctuate according to international prices, while Adnoc has a flat rate of Dh8.6.
"Queues of trucks have been growing in the past few weeks. It ranges from 50 trucks at night to two-km tail of trucks during the day. There are traffic problems near the station. Workers cannot get any kind of rest day or night," the station attendant said.
The price difference has encouraged private fuel suppliers to offer diesel at rates lower than those at Enoc, Eppco and Emarat.
A company in Dubai is offering diesel at five to 10 per cent less than the price offered by fuel stations. Yesterday, the rate of one supplier ranged from Dh13 to Dh13.5 based on the quantity of the order.
Obaid Ali of Al Ali General Transport in Dubai said he got his orders from one of the private suppliers in Dubai but he was not sure about the source of the diesel. "All I know is that he is an unofficial agent of Adnoc in Dubai. He has no premises, but he has a mobile to which I call and place my orders. I am happy with him because I can save 10 per cent on my diesel bill," Ali said.
Sajeed Ahmad of Al Ahmad Transport and General Contracting in Ajman said the diesel dilemma has had an impact on the transport industry.
Increasing costs
He said diesel prices and government regulations that restrict the movement of trucks on roads during the day have increased the cost of operation and most companies that signed long-term contracts had either pulled out or reduced their operations recently.
Ahmad said his company's fleet consumed 15,000 to 17,000 gallons per day. The cost of diesel was around Dh8 per gallon last year but it is over Dh14 this year. There is no sign that prices will go down.
Have your say
Do you think there should be such a wide price band on the same commodity in different parts of a country? Will this influence your decision on where to fill your fuel? Tell us at letter2editor@gulfnews.com
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