GRTU views 'cartel' claims as 'ridiculous' - €26m needed for petrol stations upgrading
The GRTU said this evening that claims by the Consumers' Association that petrol station owners were acting like a cartel in their claims for a higher commission were unethical and ridiculous.
The GRTU is representing the petrol station owners in talks with the government and Enemalta.
The GRTU insisted that the right of association in Malta is guaranteed by the Maltese Constitution and the government and the state could not be expected to treat owners of businesses as inferior citizens of Malta.
Furthermore, associations of undertakings were recognised by the competition laws and Consumers` Associations could not expect to deny to others what they themselves enjoyed as a right at law.
On the issue of fuel prices and petrol stations upgrading, the GRTU said it had consistently abided by competition rules and by the decisions of the Malta Resources Authority (MRA).
The MRA had decided on a programme of investments that needed to be implemented by petrol station owners so that, in pursuit of higher standards to consumers and to the environment in general, all petrol stations in Malta and Gozo attained EU approved standards.
This involved a massive €26m investment.
"There is no way that this investment can be sustained without a restructuring of the whole structure of cost within the whole fuel distribution chain. This involves a review of costs by Enemalta and petrol station owners and a final decision by the MRA as to what prices will be made available to consumers," the GRTU said.
In this process, it said, the MRA was representing the interests of users and consumers, Enemalta was the only supplier of petrol and the major supplier of diesel to all petrol stations and the GRTU was the representative of all petrol station owners
"All three parties are interested in ensuring that our country will have the highest quality where petrol stations financed and operated at the cost of the private petrol station owners, a profitable Enemalta operation that operates on commercial lines and the maximum protection of users and consumers in the competitive structure of the market which is the responsibility of the MRA, the GRTU said.
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Sean Grima
Dec 21st 2010, 13:37
nobody is saying that the petrol stations owners should not request higher commission, if they forked out extra investment, but to make the consumer suffer, when their dispute is with the government is unfair. they should be added to the categories of people whose service is essential and who cannot take such industrial action. if at all, they should withold any payments they owe to the government.
Louis Gatt
Dec 21st 2010, 13:30
That sounds like a huge sum of money. Perhaps petrol stations will be paved with marble!
Jane Busuttil
Dec 21st 2010, 11:59
Tell it to the marines Censu five. You told your members they will be better off in the EU. Now they are finding out what it really is. You opted for free competition, you got free competition, now face free competition and if you cannot compete just close down and say mea culpa.
joe scerri
Dec 21st 2010, 11:27
Why should I subsidize petrol station owners?
When a business needs to invest it either raises capital or draws from its profits, it does not increase its prices. Otherwise it closes down, tough, that's reality. Enough spoon feeding.
edward ciantar
Dec 21st 2010, 10:59
Open up the market. Air Malta has suffered with the arrival of the lcas' but the citizens are enjoying the ride (or are they?). so what's good for the goose............... cartels = arrogance.
Muscat Pat
Dec 21st 2010, 09:19
If "is-suq issuq" :profits should reflect the service given by the operator, and not the pressures of the "good the bad and the ugly"! Given that the number of pumps in Malta and Gozo is controlled and defended by the operators- (there is a veritable entry barrier), the pump owners can.t have the "cake and eat it". So petrol pumps, I think, should be liberalised, pharmacy licenses should be liberalised, and taxi licenses should be liberalised too! Competition is the name of the new game. Of course, liberilisation does not mean getting rid of one state monopoly, and then give birth to private duo poly,as in the cse of gas !
Chris Finch
Dec 21st 2010, 08:40
Of course its a cartel. Instead of us having to fork out 26million, just open the door to competition. Let Esso, BP, Fina or Q8 open a few petrol stations.
That way we would see an instant upgrade in facilities. Those stations that don't upgrade would soon shut due to lack of customers. That is how business works. After all, should the consumer be asked to pay for every shop on the island to be refurbished?
victor caruana
Dec 21st 2010, 08:33
Oh! Cartel claims are ridiculous in this case!!
How can one explain that the price of fuel is the same in all pumps? Cannot they compete with each other? Of course not, and to booth, they all want to upgrade at the same time!!!!
Yes, a clear cartel monopolised by Enemalta.
C. Farrugia
Dec 21st 2010, 06:32
Why should consumers pay for the upgrading of the petrol stations. Which industry or commercial entity asks its customers to pay for the company's upgrading. It is all done with own funds from profts made throughout the years.
l fenech
Dec 21st 2010, 05:03
Vince, din ma iddoqqlokx ghax-kontra il-Gvern. Int tal-hamsa kont u hekk tibqa sakemm jibqa hemm il-Gvern presenti.
charlie vella
Dec 20th 2010, 21:46
as a minibus operator we have to upgrade our minibuses without any help from the goverment the only help we have is no registration fee and vat like other companies .but we lost our permit of our minibus .so the upgrading needed should be carried by them.
T Camilleri
Dec 20th 2010, 21:25
Go tell it to the marines Censu Gimme Five.
joh muscat
Dec 20th 2010, 21:22
If it's not a CARTEL style what can we customers call it? Hallina Sur Cens!! Vince is not concerned about another raise in fuel prices, perhaps his petrol is free? Who knows?
Joseph Grech
Dec 20th 2010, 21:17
X qed jinsa jghid is Sur Carlo Cini (u shabu)
Mela dawn in nies (il petrol station owners) jiehdu l pompi b xejn minghand l enemalta. ihallsu biss ghall ispejjez hemm imsejha civil works, tankijiet, pajpijiet u accessorji ohra. l-owners bejnietom iffurmaw kumpanija li jisimha petroleum services ltd u din il kumpanija tiehu hsieb il manutenzjoni. malli jisimghu il kelma upgrading dawn l owners jitkexkxu ghax jippretendu li l bajtra dejjem taqa f halqhom (imqaxxra u mkessha) u mhux iniggzu idejom bix xewk biex jaqtawha minn gos sigra. Dawn ghandom permessi li bejn wiehed u iehor jiswew xi EUR 400,000 il wiehed; iva dashekk tinbigh pompa meta tibdel l idejn (apparti l art li fuqha tkun mibnija).
ejja naraw argumenti taghhom; qed jghidu li ma jaqilawx bizzejjed. Pompa average tbigh bejn wiehed u iehor 1.5 miljun litru fuel fis sena. AVERAGE ghax hemm pompi li jbighu hafna u hafna izjed. Bhalissa dawn jaghmlu profitt ta 5c1 fuq kull litru li jigu dhul medju ta EUR76,500 mill fuel biss. Meta tghodd kemm idahhlu minn tiswija ta puncture, bejgh ta landa zejt, gallun distilled water, u mitt elf haga ohra tohrog wahedha risposta jekk dawn in nies humiex greedy jew le.
albert scerri
Dec 20th 2010, 21:12
tajba din Sur Farrugia. Iridu jaghmlu upgrading tal-pompi minn fuq flus il-poplu ghal haga li tibqa` taghhom.Kelli bzonn li xi hadd johrogli kapital biex nibda business.Kemm se ndumu tfal.Jekk il-pompi huma taghhom il-flus johorguhom huma - ara li kieku ghed il-Gvern jislifhom u wara certu zmien ihallsu lura taghmel sens,imma mhux li naghtik il-flus ghal haga li hija tieghek.
A. Calleja
Dec 20th 2010, 21:06
Could it be that there might be too many petrol stations in Malta? Could it be that the economies of scale are all wrong because of this? Most stations are empty at any given time. The consumer might be paying more for the luxury of finding a petrol station every so many metres. A clear indicator is that many stations are deserted from early evening onwards. It is clear that before Enemalta improves the margins made by the petrol stations, the present capacity is studied. If there are too many stations leave the prices (and margins) as they are and let the demand and supply rules decide which stations should survive. The free market rules must be allowed to prevail. The consumer should not pay for over-supply. Enemalta should resist increasing commissions before an independent survey is carried out by experts to see if this is the real reason why stations cannot make ends meet.
D Treble
Dec 20th 2010, 20:33
So welcome to third world Europe !!!!
Michael Borg
Dec 20th 2010, 20:16
I am Grocer owner so can i upgrade at consumers cost ? whether they like it or not
cause petrol is like groceries you can live withou it !!
John Another
Dec 20th 2010, 19:24
And to 'attain EU approved standards' it is the tax-payer that has to pay. Right. But, where is the competition?
Charles Zammit
Dec 20th 2010, 19:19
Of course petrol stations in Malta act like cartels. Where else in Europe do you get anything of the sort. Prices vary from one service station to another even if they sell the same brand. Do we get this in Malta? Are we in the EU yet? Looks like we have a different set of regulations here.
D.Galea
Dec 20th 2010, 20:18
@ Mr. Zammit
Totally agree. Although cartels and monopolies are unlawful they both are found in Malta.
J Oatmon
Dec 21st 2010, 06:02
We have many cartels in Malta that is why we have expensive drugs (importer cartel), Europe's most expensive taxi's (try going against the majority view and see what happens), also Enemalta - Malta's most disorganised, poorly run, inflated prices, company?
With no competition the result is very poor service (usually a 5 day week and no service on holidays), high prices, and the unions love it because it's a closed shop.
m.camilleri
Dec 21st 2010, 08:26
qed tejd hafna u flistes hin mintiex tinduna li malta kumpanija wahda aw tal fuel li hija lenemalta.Aluwra kif tipretendi li jista ikun aw competion? tista tfemni? Biex jigri dak li qed tejd inti il gvern irid jiftah is suq lill kull min irid jigi ibih il fuel lill petrol stations.
M Borg
Dec 21st 2010, 09:22
i fully agree with you both. some EU regulations seem that do not apply for Malta, while others apply for Malta but not for any other countries!
The EU is a preacher of free market and of facilitating entry into market, though in Malta, in recent months we have been facing quite some 'hot' issues such as:
the 'monopoly' issue of the Gozo Channel Line;
Transport Malta fixing number of Taxi licencing, and worse off AUCTIONING new licences at prices ranging from €40,000 to €110,000;
restriction on pharmacies;
restriction on hearse owners;
and now the Fuel Station Owners, definately acting as a cartell to the detriment of the consumers.
Are we living in the same Malta which is an EU Member State or maybe there are two Maltas?? Thus, the supermarket owners, the carpenters, the mechanics, and those offering a service from both an immovable or movable property can pressure the government to increase their prices in order to upgrade their properties.
Purely ridiculous..........................
Free Market...........my foot !!