EU presses Malta to liberalise fuel imports

The European Union yesterday threatened legal action over Malta's delay in ending Enemalta's monopoly over the importation of fuel.

The accession treaty between Malta and the EU laid down that the importation was to be fully liberalised by the beginning of this year. However, a few days before the deadline expired, the government had announced a delay of a further three months, to the end of March.

Despite several reminders by the Commission after that, Enemalta has remained the only company in Malta licensed to import fuel products.

A number of private companies, including international fuel giants such as Shell, have shown an interest in penetrating the Maltese market but have had to put their plans on hold until the authorities decide to lift the current monopoly. Under EU rules, owners of service stations should also be allowed to import their own petrol, LRP and diesel.

The Commission yesterday gave Malta two months to remedy the situation or face legal action.

It noted that under article 31 of the EC Treaty, member states are obliged to adjust any state monopolies of a commercial character so as to ensure that no discrimination in the conditions under which goods are procured and marketed exists between nationals of member states.

According to the Accession Treaty, Malta had to ensure that petroleum products could be traded through a licensing system by last January 1.

"From the information available to the Commission, no trading licences have been issued and Enemalta Corporation is still the only company authorised to import petroleum for the inland fuel market," the Commission said in a statement.

"The necessary legislative measures to bring the system in line with article 31 of the EC Treaty are reported to be under discussion, but have not been adopted so far,"

The Commission is insisting that the current system is untenable and that the government must take the necessary measures to ensure competition. Last April, a consultation process on liberalisation was launched by the Malta Resources Authority but no further progress has since been reported.

Contacted by The Times, a government spokesman would only say that the issue is still under discussion and that progress should be made shortly.