Fuel monopoly to be lifted by end of month

Enemalta will be losing its monopoly on the importation of all fuel products by the end of the month as the government liberalises the importation, storage and distribution services connected to the importation of fuel.

A government source told The Times yesterday that "all measures have now been put in place to ensure that, by the end of this month, liberalisation in this area will take place. The only thing left to do is place the actual notice in the Government Gazette."

This measure, demanded by the European Commission, will bring about competition in the fuel market, which not only supplies road transport but also industry, aviation and shipping.

"As from the end of this month, interested companies can apply to obtain a licence from the Malta Resources Authority to start importing fuel," the source said.

"We have been preparing for a long time for this to happen and the Cabinet gave its final green light last February.

Through that decision, the government established a new energy market policy, which stipulated that fuel liberalisation would take place by the third quarter of this year. We are now in a position to do so and the EU was also informed of our plans."

Malta was bound by the EU Accession Treaty to lift Enemalta's monopoly by the beginning of last year and the European Commission has raised questions about the repeated delays.

The EU executive decided last June to step up its pressure on Malta and presented it with a reasoned opinion, the second stage of its legal proceedings, threatening that the issue would end up in court if Malta did not fall in line immediately.

A source close to Malta Resources Authority, the sector's regulator said that a number of private companies, including international fuel giants such as Shell, have already shown interest in penetrating the Maltese market, particularly the aviation fuel sector.

The liberalisation of fuel imports will effectively also mean that owners of service stations can import their own petrol, LRP and diesel.

However, to do this they will need to be in possession of both a petrol station and a wholesaler licence granted by the authority.