Dutch oil group leads race for Petroleum Division
A Dutch oil group, BB Energy BV, has been named first bidder in the commercialisation of Enemalta's Petroleum Division.
The division is responsible for the importation, storage and distribution of all petroleum products and liquid petroleum gas in Malta.
After the court turned down a request by Attard Services Limited (ASL) in September to stop the commercialisation process, the Ministry of Finance, with the Cabinet's authorisation, informed the Privatisation Unit that the government had accepted the recommendations of the adjudicating committee.
The committee had recommended that BB Energy BV be named first ranking bidder and, accordingly, the group has been invited to attend a meeting to start negotiations. If negotiations prove successful the group will take charge of the operation, maintenance and development of Enemalta's Petroleum Division and the business activities undertaken by Mediterranean Offshore Bunkering Company Ltd (MOBC).
ASL's request, rejected on September 17, was the second application for the issue of a prohibitory injunction filed this year against Enemalta. The first application had also been rejected by the First Hall.
The chosen Netherlands-based group mainly focuses on trading, storing and distributing oil largely in the Middle East and Eastern Mediterranean region. Enemalta is also set to face competition as two new companies, Fuel Energy Ltd and Island Petroleum Services Ltd, were given the green light last month to start importing fuel independently and offer it at different rates to petrol stations and other distributors. It is not yet known in which fuel sectors the two new companies will compete with Enemalta.
The licences were issued to the two private companies on October 26, following the start of legal proceedings against Malta by the European Commission when it delayed opening up the fuel market as it was supposed to have done by 2006 as per the Accession Treaty.
This led the government to adopt a new energy market policy and open it up for competition in October 2007.
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lgalea
Nov 22nd 2008, 17:33
Privatization will not lower the prices.
First of all because private enterprises are there to make a profit, which if made by a parastatal company ends up in Malta's coffer to be used for the people instead of private hands.
Secondly, whatever the price the Government will still charge excise duty and VAT and adjust the excise duty as much as it wants, so it will still remain very high.
Conclusion: the prices will remain high if not higher because the Government will still want its dues, including keeping the same level of income it had previously from these products.
Joe Vella
Nov 22nd 2008, 16:40
@ Effie Carbonaro
I always thought that State owned enterprise was always a Sacred Cow for the Socialist.
To come to the point in regards to petrol prices in this instance has nothing to do with privitisation or the international oil price. Did it ever crossed your mind that Italy followed the UK by reducing the excise tax in collects on such a commodity.
But again, One would be expecting to much from a little elve.
effie carbonaro
Nov 22nd 2008, 13:12
@mr.joe vella
if you have sense in your mind petrol prices is not a politcal issue but it is part of our daily life.perpaps you are rich and dont give a damn about oil prices. but you centre all your guns on all those people who criticize the pn.all the fire you have is bringing the past of the mlp not knowing or forgeting that these prices are hitting all of us blue ad red.
Joe Vella
Nov 22nd 2008, 12:19
@ effie Carbonaro
Since when a little elve like you threw his socialist hat away and is calling for privitisation,? Or this is just going a few days or maybe few hours?
effie carbonaro
Nov 22nd 2008, 11:46
it is about time the petroleum division is privitised
example;petrol prices in malta
LRP € 1.308 per litre
Unleaded € 1.238 per litre
petrol pices in italy
Benzina sotto quota 1,17 euro /litro
La verde costa 1,169 euro/litro.
i wrote them in italian so readers can see that they are not invented.they were qouted today in italian newspapers
to add salt to injury look what is written on the enemalta website under the fuel prices
These prices are adjusted on a monthly basis to account for price variations in the international market.