The competition watchdog is looking into claims by a petrol station owner that he was pressured by a fuel supplier to scrap plans for selling cut-price diesel.
A spokesman for the competition office within the Malta Competition and Consumer Affairs Authority yesterday told Times of Malta meetings were being held with the parties involved.
Petrol station owner Mario Camilleri yesterday confirmed he had met the competition office to give them his version of events. The matter came to the fore when Times of Malta reported on Tuesday that a Rabat fuel pump would be selling San Lucian diesel supplied by the Falzon Group at €1.33 per litre, 2c below the maximum allowed price.
We urge the government to explain how the fuel market is working
However, Mr Camilleri abandoned the plan after he was contacted by Joe Falzon, the owner of the Falzon Group, who told him the higher profit margin awarded in January would be withdrawn. Mr Camilleri had decided to pass on the higher profit margin to consumers by cutting the price of diesel.
The Falzon Group has so far failed to explain Mr Falzon’s decision, with CEO Cornelia Zammit German insisting all fuel stations were free to sell fuel at whatever price they deemed fit.
This was repeated by the Energy Ministry last night. In an official statement, it said all operators in the fuels market in Malta were free to compete in terms of prices.
The story has raised eyebrows about the lack of price competition despite a liberalised fuel market.
The Union Ħaddiema Magħqudin yesterday voiced concern over the matter, questioning whether the EU’s competition rules were truly being respected.
It asked whether this was the result of a market dominated by a State fuel company that determined the pump prices despite the existence of private operators.
The UĦM also called on the consumer and competition watchdog to investigate the matter.
“We urge the government to explain how the fuel market is working in Malta and how pump prices are being set at a meeting of the Malta Council for Economic and Social Development.”
The fuel market was liberalised in 2007 but this did not benefit consumers at the pump. Enemed (the State company that took over Enemalta’s petroleum division) enjoys a virtual monopoly and a handful of other fuel suppliers have always pegged their prices to that of the State company.
Private fuel suppliers import diesel in the same shipments as Enemed’s and this is very often stored in the State company’s storage facilities.
The controversy comes at a time when the government is being criticised over hedging agreements that have kept fuel prices high despite the international price of oil tumbling to new lows.