It is no news that the price of oil and fuel has plummeted these last few weeks, yet local prices at the pumps have remained the same since May and will remain so until the end of the year to ensure fuel ‘price stability’.

Of course, people are usually happy when this policy protects them as consumers from being charged higher prices, but grumble when it prevents prices from falling, as is currently presumed.

The Opposition has claimed that in October 2010, diesel was €0.30 cheaper than it is now when the price of oil was the same as it is today – it was actually €0.28 cheaper at €1.08 per litre. The government claims that the Opposition’s calculations are ‘technically’ wrong.

In actual fact, as much as €0.96 per litre for petrol and €0.84 per litre of diesel consists of taxes and premiums for Enemalta and the station owners, and overall the current prices are about €0.07 higher than they should be.

There is still time to hedge now for delivery of fuel in January. Alas, there are grey clouds over fuel prices come next Budget and I fear that the windfall in fuel profit and taxes will go to make good for the high subsidies that will be paid to the public transport operator.