No decision yet on fuel liberalisation

The Cabinet will have to wait another week before deciding on fuel liberalisation as the key ministries involved in the process trash out some final issues involving Enemalta.

A consultation paper on the overdue liberalisation of the fuel market was discussed by the Cabinet on Monday.

However, government sources told The Times no decision had been taken. Some final issues, mostly regarding Enemalta, remain to be discussed between the Resources Ministry and the IT and Investments Ministry, which are responsible for the fuel market and the energy monopoly respectively, the sources said.

It is hoped that the final points will be settled tomorrow or the day after and that a final decision will be made at next Monday's Cabinet session.

The government had a commitment with the EU to lift Enemalta's monopoly by last January 1, but at the 11th hour it announced it would be delaying the process.

The liberalisation would mean in practice that service station owners will be able to import petrol, LRP and diesel.

The head of the EU representation in Malta, Joanna Drake, had said the European Commission was following the situation closely.

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

An official statement issued last December to justify the delay, had said 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.