Joseph Muscat has acknowledged meeting oil traders but insisted that all he told them was a Labour government was interested in a gas-fired power station.

The Labour leader was reacting to a press conference by Transport Minister Austin Gatt this afternoon in which the former energy minister implied that Dr Muscat had met oil traders.

Addressing party supporters at Xaghra in Gozo, Dr Muscat accused Dr Gatt of concocting a story to try and portray the Labour Party and the independent media in cahoots to bring him down.

"These are the arguments of someone who has nothing else to say," Dr Muscat said, adding that Dr Gatt had better answer the serious questions raised by the oil scandal.

To applause and in a cheeky tone, Dr Muscat said he met oil traders and told them the party was interested in shifting to the cleaner gas. "Our policy has been to get the country off its dependence on the dirtiest oil."

He called for a positive campaign and urged supporters to continue working to convince people to vote Labour in the election.

He also picked up on the moving testimonial given by former PN head of radio Kevin Drake yesterday, who said the country should not go back to the times when people were distinguished by their political creed.

"We have to keep our doors wide open and welcome these people," he said as supporters gave him a standing ovation.

The meeting under the tent did not last long but Dr Muscat was given a rousing welcome in the presence of the president of European Socialists in the European Parliament Hannes Swoboda.

Mr Swoboda is expected to address tomorrow's mass meeting.