Auditor to check higher costs claim

The claim by petrol station owners that the costs they incur to distribute fuel have increased will be checked by an independent auditor under an agreement reached between the owners' representatives and the government on Tuesday.

A dispute between Enemalta Corporation and petrol stations last week fuelled speculation of a petrol strike over the latter's claim for higher commission on sales to compensate them for increased costs. On Wednesday, queues formed outside petrol stations all over the island, snarling traffic.

Carlo Cini, the petrol station owners' representative within the Chamber of Small and Medium Enterprises - GRTU, told The Times that following a meeting held at the Investments Ministry, the two sides had agreed that costs should be calculated by an auditor "as long as the costings format does not change". Enemalta had said that, within the context of the liberalisation of the market, it could not reach agreement with petrol station owners without first verifying the expenses they claim to be incurring.

Petrol stations have asked to raise their profit margin by 3.4 mils per litre.

However, according to Enemalta, this would further increase prices at the pump as consumers would have to pay an extra 4c on each Lm5 if a litre of petrol costs 45.6c and a litre of diesel costs 39.3c.

Enemalta does not feel there is enough justification to raise the prices and offered to appoint an auditor to verify the financial basis of the owners' request.

The verification report will now need to confirm that the expenses claimed concern the distribution of petrol and do not cover costs related to other commercial activities carried out at petrol stations.

Petrol station owners were informed about the recent developments in a meeting held last night.