The Sharjah Executive Council has given the Enoc Group 72 hours to resume operations at its fuel stations in the emirate, the countdown for which began on Tuesday.
"Failure to adhere to this deadline will see the SEDD [Sharjah Economic Dev-elopment Department] taking the necessary actions, which could result in the closure of the group's stations and facilities in Sharjah," a statement from the Sharjah Media Centre said Wednesday.
The regular meeting of the Executive Council, chaired by Shaikh Abdullah Bin Salem Al Qasimi, Deputy Ruler of Sharjah, discussed the Enoc Group's reply stating the reasons behind the closure of the petrol stations.
An official letter in which the Enoc Group was informed of the instructions issued by the Executive Council, was sent by the SEDD on Tuesday in an effort to put an immediate end to the petrol crisis.
"The SEDD is awaiting a response from the Enoc Group; one the department hopes will indicate the group's intention to resume the operation of its services, which have experienced constant disruption since the end of May," the statement said.
The fuel shortage at the Enoc Group's facilities has led to the closure of 82 stations in Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah and Fujairah.
A spokesperson for the Enoc Group was unavailable despite several attempts by Gulf News to contact him by telephone.
Reacting to the development, an Emirati energy expert told Gulf News that the Enoc Group may only be able to start partial operations in Sharjah and other emirates by the end of the deadline.
"A shutdown of pumps in Sharjah would probably be the best thing for the Enoc Group as the pumps are negatively contributing to the company balance sheet. The group has already lost Dh850 million in petrol subsidies from January-May this year and by the end of June, their subsidy bill will exceed Dh1 billion," he said.
"A solution to the problem lies in the Abu Dhabi Government agreeing to bear the entire subsidy bill of the Enoc Group. The other solution is the Federal Government frees the pump prices of petrol, links them directly to international prices, but at the same time subsidises the UAE nationals in the form of free petrol for cars — I think 100 gallons per person per month should be sufficient," he added.
From / Gulf News