The fuel retailer Adnoc Distribution expects to post a profit next year for the first time since 2005 thanks to the new system of pricing petrol on a formula linked to international oil prices, its chief executive said.
The federal government introduced monthly price-setting based on global markets in August in a bid to curtail losses that were affecting the fiscal budget.
Between 2005 and July his year, government subsidies on petrol reached about Dh40 billion.
“In 2016, we shouldn’t have any losses for the first time since 2005,” said Abdulla Al Dhaheri, who was speaking on the sidelines of the Dubai Airshow.
Currently, prices are set by a committee led by the energy ministry using undisclosed benchmarks linked to international markets. Oil prices play a major part, and Brent crude has more than halved since last year’s highs of about US$115 per barrel.
There is no sign of oil prices rising significantly any time soon. Petrol prices at the UAE’s pumps this month fell below July’s levels.
Adnoc Distribution’s revenues last year reached Dh29bn and are expected to drop to about Dh23bn this year owing to the weaker oil price.
Separately, it expects to boost its investments by 25 per cent in 2016 to Dh1.5bn from Dh1.2bn this year, with most of the money going towards adding new petrol stations.
Demand for fuel is growing at 7 per cent per year.
The company will have about 507 stations by 2017, including new additions, acquisitions and transfer of ownership of petrol stations. Currently it has 385 stations. Adnoc is adding 125 new stations and plans to take over 59 petrol stations in Dubai and other assets around the country as part of the second phase of acquiring petrol stations from fuel retailer Emarat.
In the first phase, Adnoc took over 75 petrol stations run by Emarat in Sharjah, Ras Al Khaimah, Ajman, Umm Al Quwain and Fujairah, in accordance with an agreement signed with Emarat in September 2013.
Mr Al Dhaheri declined to give a value for the takeover of Emarat stations.
Adnoc has also started refurbishing 25 non-operational service stations in Sharjah transferred from the fuel retailer Enoc.
The company is investing Dh750 million in a fuel depot at the new Midfield terminal in Abu Dhabi that should be in operation in the third quarter of next year.
dalsaadi@thenational.ae
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A State of Passion
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Stars: Dr Ghassan Abu-Sittah
Rating: 4/5
A Bad Moms Christmas
Dir: John Lucas and Scott Moore
Starring: Mila Kunis, Kathryn Hahn, Kristen Bell, Susan Sarandon, Christine Baranski, Cheryl Hines
Two stars
Know before you go
- Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
- If you’re driving, make sure your insurance covers Oman.
- By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
- Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
- Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.
Ms Yang's top tips for parents new to the UAE
- Join parent networks
- Look beyond school fees
- Keep an open mind
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
How the UAE gratuity payment is calculated now
Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.
The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.
1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):
a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33
b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.
2. For those who have worked more than five years
c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.
Note: The maximum figure cannot exceed two years total salary figure.
A list of the animal rescue organisations in the UAE
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Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
