Prices of petrol, diesel rise again

Alfred Farrugia

Oct 3rd 2011, 15:07

The table provided by Enemalta is already outdated! Fuel prices change every day, and today’s prices in Europe may be found in a table in the following website:

http://www.energy.eu/

Those who are trying to justify Enemalta’s mode of operation have evidently not looked at Cyprus and Luxembourg where the population is also small and the distances are not so great.

Why is it that in 11 EU countries the price of fuel is lower than ours? Where are these countries getting their supplies from, because the price excluding VAT is also lower than ours?

Incidentally only Cyprus, Luxembourg and Spain have lower VAT, while Slovenia has the same amount of VAT as us. This means that Enemalta’s inefficient source does not really allow the government authorities much room to make a quick euro.

By fixing the price for a whole month, Maltese consumers are not benefitting when prices are lower during the month. They might benefit if and when the prices exceed the price fixed by Enemalta for that particular month.

If the government is convinced that Enemalta is serving its consumers in the right way - hopefully with the right quality of unleaded Euro95, why does it not allow the Corporation to compete with other suppliers, such as Shell, Exxon/Mobil, BP and others? Or is Enemalta making a profit? Has the government considered the possibility that if other suppliers are allowed to compete with Enemalta these suppliers – with more business efficiency - could employ more employees than the number shed by Enemalta?

Albert Bezzina

Oct 3rd 2011, 12:52

@ Mr Joseph Briffa
When you mention:-
"Productions costs do not depend solely on the price of crude oil - that represents 60% of our production costs. It also reflects labour costs, maintenance of plant and equipment, as well as amortisation of loans. Enemalta is at the moment building the extension of the Delimara PS and will be paying for the submarine cable to neighbouring Sicily for Malta to be connected to the European grid. Furthermore maintenance costs are high quite high as the Marsa Plant is old and is very inefficient."

May I remind you that the debts accumulated by Enemalta, DMS extension and the Malta Sicily interconnecter are ALL related to the generation of electrical power. Automotive fuels have NEVER been subsidized. The higher excise tax imposed in Oct 2010 on automotive and heating fuels and the increase in VAT revenue from fuel as a consequence of increased prices are being shorn off motorists and vehicle operators to patch up losses and lack of capital to improve the infrastructure as a consequence of long standing political decisions (by both parties in Government) to avoid having consumers pay the true price for water and electricity.

You may ask what do I prefer? Is it lower automotive fuel and heating bills and higher water and electricity bills? I would answer in the affirmative. The polluter pays principle has no other interpretations. Every body should pay the full costs of all utilities. As a consequence, everybody will be responsible for waste of water and energy.

The truth is that it is not possible that Enemalta concludes contracts for fuel delivery at the end of each month and costs are based on some 'average' fuel price /exchange rate of that month.

My suspicion is that, together with fuel oil for the power stations, automotive fuel was ALSO forward bought in October 2010 at a time when Brent oil, diesel and petrol where a good 23% less than what it is today.
The claim that fuel purchases were based on the previous month prices can be an outright fabrication. Enemalta pocketing the difference - with the authorities' blessing - to pay back the €700 million in debts accumulated from the electricity generating arm.

Charles Sammut

Oct 3rd 2011, 10:08

Malta joined the EU with promises of our standards rising to EU levels. But it seems that monopolies are still monopolies and the only things to rise to EU standards have been taxes and bureaucracy. As the saying goes, nobody lies as often and as badly as politicians.

Phil Humphries

Oct 3rd 2011, 10:02

Oh, what a surprise ! - Just when people's thoughts begin drifting towards winter, the price of Kerosene goes up. So how long before Gas prices increase again ?

And will be yet another price rise before the weather turns cold ? - What do you think ?

Frans van Avendonk

Oct 3rd 2011, 08:33

I paid last night (11 pm) at an automatic pump in Rabat already the higher price! So the effect of the rise was not as "from today" but immediate as from the announcement!

Paul Micallef

Oct 3rd 2011, 08:10

Can Enemalta tell us how our low wages rank in the EU?

E Xuereb

Oct 3rd 2011, 07:51

What a surprise !!!!!