Motorists await diesel competition benefits
‘It makes no difference who supplies fuel’
Not all fuel pumps stock diesel supplied by Enemalta and, yet, motorists have no way of telling the difference, The Times has learnt.
At least a quarter of petrol stations sell diesel imported by a private fuel supplier but, despite a liberalised fuel market, the price everywhere is the same as that set by Enemalta. This means motorists are unaware who their fuel supplier is and, worse still, do not benefit from the competition.
When asked about price uniformity, the Malta Resources Authority, which regulates the fuel sector, referred this newspaper to the consumers’ authority.
When asked whether it would investigate the matter, the Malta Competition and Consumer Affairs Authority said fuel prices were fixed by the resources regulator not by the providers.
Engineer Francis Farrugia, chairman of the consumer affairs authority, insisted that nobody was keeping the station owners from selling at a lower price than that fixed by the regulator. Mr Farrugia acknowledged that motorists should know who their fuel supplier is “if they want to know” but this was up to the MRA because energy legislation fell under its remit.
Engineer Anthony Rizzo, the chief executive at MRA, said the regulator was discussing with petrol station owners the introduction of “visual markers” at the pump indicating the supplier of the particular fuel.
He confirmed that Enemalta had a dominant market status but would not divulge in percentage terms the amount of fuel supplied by the different importers.
“The information requested is of commercial nature and cannot be divulged,” Mr Rizzo said, insisting the regulator performed regular checks at petrol stations to ensure fuel quality was good.
He said that as long as the quality standard was met it did not make any difference who supplied the fuel.
Petrol station owner Carlo Cini, who represents pump owners, said that the difference in price between the diesel supplied by Enemalta and the private company only amounted to “a few mills”. He acknowledged that the fuel was not branded differently but insisted that it made little sense to do so given that the private company imported the diesel jointly with Enemalta.
“Around a quarter of petrol pumps sell diesel supplied by the private company but they also sell diesel from Enemalta depending on availability,” Mr Cini explained.
The fuel market was liberalised in 2007. Petrol is still exclusively supplied by Enemalta and, in the diesel market, the consumer is getting a single price with no knowledge of who the supplier is.
42 Comments
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Michael Walter
Dec 17th 2012, 22:35
Liberalisation means what exactly?In this,as in other 'liberalisation' exercises carte blanc to screw Joe Public.
If the 'few mils'is such a paltry sum, then the involved parties could donate it to charity,and not miss it.
Anthony Portelli
Dec 17th 2012, 19:45
All I have noticed is that most diesel cars are emitting black smoke. And that includes new cars too.
This has been happening quite lately, so the mix should be analysed.
When crap diesel is imported and fouls up cars, including damaging the pumps, consumers bear the brunt.
Keith Zerafa
Dec 17th 2012, 19:09
tinkwitax issa jitla il labour u irahas il petrol mhux ek qal
Joe aquilina
Dec 17th 2012, 20:06
u hekk ser jigri habib
Jimmy Magro
Dec 17th 2012, 18:15
This is another fiasco of market liberilisation. The same as happened in the gas market.
The only benefit is going to the private importer and some private pockets for the mixing of the cake (pudina).
E. Azzopardi
Dec 17th 2012, 17:59
Fuel should have been liberalized five or six years ago, according to the agreement we had with the EU. But nothing happened.
Ironically, fourthy years ago we had a choice of three brands. Today we have no choice.
So when is fuel going to be liberalized??
Michael Seychell
Dec 17th 2012, 18:40
Mr. Azzopardi the 3 Companies were Shell, B.P. & Esso -I may have the last name wrong - and these were told to close down during the Labour Government around 1972 a few months after being elected in June 1971..
Michael Seychell Tal-Pieta
Peter Murray
Dec 17th 2012, 16:19
When it is said that prices are "fixed" is there perhaps any duplicity -as in double-meaning-over this terminology ?Such as "fixed " as defined by being artifically manipulated and set?
Joseph Vassallo, (Bugibba)
Dec 17th 2012, 15:36
QUOTE: This means motorists are unaware who their fuel supplier is and, worse still, do not benefit from the competition. UNQUOTE
In other words, there is a cartel.
Ronnie Callus
Dec 17th 2012, 14:58
Dan biex nidhru ma' l-EU li ghandna suq hieles u mhux l-EneMalta biss. Veru tad-dahk biex fl-ahhar nispiccaw bi prezz wiehed.Din f'Malta biss isibha Dr.Gonzi.
Paul Cassar
Dec 17th 2012, 14:12
REGULATORS MY FOOT
regulators in practically all areas are there NOT to protect us BUT YES TO BE PAID BY US...........gonzipn note.
John C. Saliba
Dec 17th 2012, 13:57
It is not only a question of price, but also of quality (as referred to by my friend Karl further down ). I would want to be assured that the fuel is of an appropriate grade and not inferior. I have found varying types of fuel when driving overseas, with the lower quality most often encountered in or near the eastern parts of Europe. So yes, the origin of the fuel would certainly interest me.
Chris Sammut
Dec 17th 2012, 13:14
It s a big joke to hear that yes there s more than 1 supplier, BUT Enemalta decides about the prices. That a great competition!! Halluna!
Joseph Vassallo, (Bugibba)
Dec 17th 2012, 15:39
Don't forget the "imported jointly with Enemalta" bit...
Alfred Farrugia
Dec 17th 2012, 13:04
Are we part of the EU when it comes to the energy sector? Who is/are our national contacts? Do we have any rights as all the other EU citizens seem to enjoy? Is Malta an exception or is there something wrong with the attached map?
http://www.energy-regulators.eu/portal/page/portal/EER_HOME/ENERGY_CUSTOMERS/YOUR_ENERGY_RIGHTS/Your_national_contacts
louis brincat
Dec 17th 2012, 12:50
when the fuel goes up every end of the month say 5 euro cents is only 2 mils it will be puplished on front
page of l-orrizzont
Victor Calleja
Dec 17th 2012, 12:38
I paid 1000 euro to convert my car to run also on LPG and still I can't fill it up from the new petrol station at tal Barrani Road. When the Malta Resource Authority or any other authority is going to remedy such misbehavior?
David Galea
Dec 17th 2012, 11:43
Dear Mr. Carlo Cini,
You stated that the difference between Enemalta and the private supplier is just a couple of mills.A few of mills here and there would make a great difference o the tones of fuel that is sold every day
Joseph N. Attard
Dec 17th 2012, 11:41
It would seem that the main function of many statutory bodies set up in Malta is to redirect valid consumer queries to another such body! Cosy, very cosy. But consumers get fed up in the end, and are often left with only one way to discharge their pent up feelings.
J Goffin
Dec 17th 2012, 11:32
"the Malta Competition and Consumer Affairs Authority said fuel prices were fixed"
Thats about where the article should have stopped.
B Borg
Dec 17th 2012, 11:27
As well as who supplies the fuel, the fuel price should always be visibly displayed and duly updated by petrol pumps like any other product being sold. This is done only by a few pumps in Malta.
Franco Abela
Dec 17th 2012, 11:16
the difference in price between the diesel supplied by Enemalta and the private company only amounted to “a few mills”
MHUX OVVJA!!! MGHANDUX GHALFEJN JIKKOMPETI U JRAHHAS IL PREZZ!
Mr Karl Ciarlo'
Dec 17th 2012, 11:08
It is important to know who the supplier is because, in the event of damage to a car engine because of poor fuel, who will be responsible?
Mr C Camilleri
Dec 17th 2012, 11:07
While everything is getting cheaper and cheaper in a commercial competitive world ONLY fuel seems to be getting more and more expensive ! Nah ... Sorry but i dont believe all this bla bla bla. The words said by people in command are merely rehearsed words to simply shut up the consumer. The situation is simple. Its a huge agreement because people will always buy the cheaper option.
ANTHONY PAVIA
Dec 17th 2012, 10:56
"it made little sense to do so given that the private company imported the diesel jointly with Enemalta."
So much for COMPETITION!! Why has competition not flourished even though the market was liberalised? Is the EU there just to provide golden lifestyles for some? When will the average Maltese start enjoying real tangible gains?
Alfred Farrugia
Dec 17th 2012, 10:43
When are we going to have the possibility of purchasing BP, Esso, Shell and other brands of fuel as iall other EU countries? Are we second-class EU citizens here in Malta when it comes to the liberalization of the energy sector? Is the European Commission asleep? Can the new EU Commissioner for consumer affairs and some of his 960 staff look into this matter?
Mr C Camilleri
Dec 17th 2012, 11:24
Dr Mr Farrugia correct me if i am wrong but i think the answer to your questions comes from a very weird sentence in the above article ending "depending on availablility" ??? Does this mean that pumping stations buy from whoever gives them better prices or has fuel available at that time ?? U LEEEEEE !
C Sant
Dec 17th 2012, 12:33
When BP, Esso and Shell think it is worthwhile to open shop here. There is nothing to stop them except soze f market and prfit margins!
Mario Camilleri
Dec 17th 2012, 10:19
So does this mean that the definition of liberalization has another meaning such as cheating and stealing which has been going on since 2007?
As with the authorities in Malta, as usual from Caiaphas to Pilate and back.
What a load of crap, no wonder GonziPn iwants to stay on for another 5 years, God forbid!!
H. Psaila
Dec 17th 2012, 21:09
@ Mario Camilleri - Did you forget that the monopoly of Enemalta was done by Mintoff and did you know that at a certain period petrol LM1 per gallon and this occurred when oil was at it cheapesst. The crap came from the Labour Party who in those days wiped out Esso, BP, Shell in our country. Did Sant lower the fuel price when he was in power in 1997 for 22months. If you dont remember, but I do.
Peter Murray
Dec 17th 2012, 10:01
Also further to other comments the MRA's CEO,Anthony Rizzo-regularly likes to submit this comment as to why the MRA cannot answer questions asked .i.e. the ubiquitous"commercially sensitive information" nonsense claim.However,where can we-the consumer- access the conclusions or findings of these"regular checks peformed by MRA staff at fuel stations to ensure fuel quality?" How many ,how often?
A Galea
Dec 17th 2012, 09:59
Interesting article. So the diesel market was liberalised only for an unnamed fuel importer to take a share of Enemalta's profits. Just lovely
Jonathan Farrugia
Dec 17th 2012, 09:57
In my opinion, I think that competition in prices should be available to maltese citezens. If there is competition in prices all maltese people should benefit from this....
Peter Murray
Dec 17th 2012, 09:50
I note that apparently we have a Chairman of the CAA-Francis Farrugia -who knew and more crucially how would we know?advises consumers that "nobody was stopping petrol station owners from selling their fuel at a lower price than that fixed by the regulator" but failed to mention that nobody was stopping them from selling it a higher price either -as in the recent budget increases applied too soon
M camilleri
Dec 17th 2012, 09:43
Il kompetizjoni ghanda tigi mil kumpaniji mhux mil li stations tal petrol.Bhall ma kinu fi zmien lantik kont issib Shell,Bp,Esso il Fuel stations kinu ikunu bil kuntratt ma dawn il kumpaniji mentri il lum dan spicca.mela issa nafu ukoll il ghala dejjem joghla il Petrol u mhux id diesel :) Good day
Ethelbert Schembri
Dec 17th 2012, 09:43
This is the European mentality of GonziPN... If I'm not mistaken there is a law and many EU directives against cartel. And to make things worse the Govt is involved in this.
We are in and urgent need of a change in our mentality or else this country will never move forward!!
Carmel Serracino-inglott
Dec 17th 2012, 18:14
But of course, provided we do not change to LP mentality for this would be Moves backward, Mr. Schembri.
Peter Murray
Dec 17th 2012, 09:35
Enemalta doesn't set the prices of fuel as claimed as these are set by market forces(usually artifically manipulated)and then endorsed by a complict MRA.Also this abrogating of responsibility by governmental entities-the sloping shoulder syndrome-is endemic here as no one will ever say the buck stops here as then they might just possibly have to assume accountability and a duty of obligation
alex borg
Dec 17th 2012, 09:33
difference of a few mills or not is not the point here. the point is that consumers should have the right to know what they are buying. this looks like we are still in the age of cartel and suppliers taking advantage of the fact that consumers dont care so much as long as their engines runs
jonathan brincat
Dec 17th 2012, 09:27
pajjiz tal mickey mouse . if i could i would leave this once beatiful place to live :(
Mario Micallef
Dec 17th 2012, 09:23
l-aqwa li l-konsumatur dejjem imur tajjeb bil-liberalizazzjoni!!! u halluna ja xirka ta' briganti!
Dave Alan Caruana
Dec 17th 2012, 09:18
I really wonder when the 3c per litre awarded to pump owners to purchase new equipment is going to be removed - it is there to cover a one off cost after all - also, owners of pumps opened after the 3c was awarded are not charging less, even though they did not need to replace equipment. Very unfair to the consumer.
Please choose the reason of your report below: