Brussels pushes Malta to liberalise fuel

The European Commission has decided to put more pressure on Malta to end state company Enemalta's monopoly over the importation, storage and distribution of petroleum products.

A second "reasoned opinion" is to be sent to the Maltese authorities asking them to conform to their obligations as agreed in the accession treaty.

The move follows a meeting last Wednesday in which the Commission discussed infringements of EU law.

European Competition Commissioner Nellie Kroes said Malta was maintaining discriminatory measures in favour of the commercial state monopoly, stopping any potential new entrants from getting into the wholesale petroleum market.

"On accession, Malta committed itself to adapt its rules. Eighteen months after this should have been done it is now clearly urgent that the necessary changes are made," she said.

The Commission had already sent a similar request last October with the government replying that the monopoly should be lifted by the third quarter of this year.

According to the accession treaty between Malta and the EU, the importation of fuel had to be fully liberalised by the beginning of 2006. However, a few days before the original deadline, the government had announced a delay of a further three months up to the end of March 2006. Despite several reminders from the Commission, the situation has remained unchanged and Enemalta is still the only company in Malta licensed to import fuel products.

It is known that a number of private companies, including international fuel giants such as Shell, have shown an interest in penetrating the Maltese market but had to put their plans on hold.

The liberalisation of fuel imports will 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 wholesaler licence granted by the Malta Resources Authority.