Cabinet to discuss fuel liberalisation

The Cabinet is expected to discuss on Monday a consultation paper tabled by the Infrastructure Ministry on the overdue liberalisation of the fuel market.

The government had promised the EU it would lift Enemalta's monopoly by last January 1, but at the eleventh hour it announced it would be delaying the process.

Details of the consultation paper are expected to be released on Monday, pending Cabinet approval, sources told The Times. The liberalisation is likely to take place in May.

A spokesman for the Infrastructure Ministry, under whose wing the Malta Resources Authority falls, said there would be developments on the matter in the coming days but refrained from giving any details.

As a result of the liberalisation, service station owners will be able to import petrol, LRP and diesel but they would have to apply and obtain an import licence.

When contacted, Joanna Drake, head of the EU representation in Malta, said the European Commission was closely monitoring the situation and was in close contact with the government.

The Commission has reminded the government of its obligation under the Accession Treaty to abolish monopoly rights in the importation, stocking and wholesale of petroleum products not later than last December 31, she said.

It also asked for information on how and when the government intends to adopt the relative legislation. The Maltese authorities had promised to reply to the request shortly.

"The situation will be further assessed as soon as the Commission receives and analyses the reply. The Commission will take all the appropriate and necessary measures to ensure Malta respects its obligations under the Accession Treaty," Dr Drake said.

An official statement issued last December to justify the delay had said that it was prudent to consider all options, given the importance of this market to the economy and to consumers.

The consultation paper will inform stakeholders and the public of the proposed changes and should include the draft legislation that will provide the legal framework for liberalisation and the proposed licensing schemes and conditions.

Importing energy products needs preparation and prospective importers have to think of storage facilities apart from other logistic arrangements.