European Commission 'establishing the facts'

The European Commission is "in the process of establishing the facts" about the government's postponement of the liberalisation of fuel imports.

A month ago the government announced that the liberalisation, originally meant for January 1, was to be postponed by at least three months.

However, the Commission has given no further comment in reply to questions sent by The Times at the beginning of the month.

Pressed to give its reaction to the postponement and to say whether this breaches the accession treaty signed by Malta and the EU, the Commission's spokesman for competition policy said:

"The Commission is aware of the import monopoly for fuel into Malta and the fact that Malta is committed under the accession treaty to end it by December 31, 2005. The Commission is monitoring the implementation of these commitments but at this stage is not in a position to provide further information."

In the accession negotiations, Malta had bound itself to liberalise the importation of fuel by the end of last year and a number of private companies were planning to enter the market.

However, a few days before the start of the new year, the government announced a change in plans saying that the liberalisation would have to be delayed by at least three months as the government and the regulator review "particular proposals for changes to the original plans and proposed policy".

Sources close to the Commission yesterday told The Times that the Commission, as guardian of the accession treaty, does not normally allow such a change, especially when it had been known about by the member state itself for years.

Asked if, in view of the change of plan, Malta could face legal action, the Commission spokesman declined to comment.

The process of liberalisation of fuel imports, so far a monopoly of Enemalta, will eventually allow owners of service stations to import on their own petrol, LRP and diesel.

To do this they will need to be in possession of both a petrol station and wholesale licence.