An investigation into the fuel market by the Malta Competition and Consumer Affairs Authority is proving to be very complex.

The probe, aimed at establishing whether the fuel market is truly competitive, was launched last month after the owner of a Rabat fuel pump had to reverse his decision to cut the price of diesel by 2c when the fuel supplier allegedly intervened.

When asked what stage the investigation had reached, a spokesman said the probe was still ongoing, adding that it was a very complex issue.

“Any investigation carried out by the MCCAA entails the analysis of extensive information on submissions provided... as well as various meetings held with the parties involved,” the spokesman said.

The consumers’ watchdog is already in possession of the necessary information after speaking to the parties involved.

However, the data needs to be analysed further. “The investigation entails complex legal and economic analysis that must be carried out before any decision is made,” the spokesman added.

As the controversy raged on about the high fuel prices at petrol pumps when compared to the falling EU average, Mario Camilleri last month announced he would be selling diesel 2c below the price established by the government.

However, motorists did not have time to benefit from Mr Camilleri’s initiative because on the day the new price was to come into effect he received a call from Joe Falzon, owner of Falzon Group, which supplies diesel, telling him the higher profit margin he enjoyed would be withdrawn if the decision remained.

The Falzon Group has so far failed to explain its decision even though its CEO, Cornelia Zammit German, insisted that fuel stations were free to set their own prices.

Although the fuel market was liberalised in 2007, consumers have experienced no benefit yet and the prices of petrol and diesel are the same across the island.

While the government’s company, Enemed, is the only importer of petrol, diesel is also imported by a few other suppliers, particularly the Falzon Group and Cassar Fuel Ltd. Still, despite the different suppliers, the price of diesel at the pump is the same as that supplied by Enemed, which has the largest market share.

The government denies there is no competition or the existence of a cartel insisting that fuel suppliers are at liberty to sell their products at the price they want. All fuel importers depend directly or indirectly on storage facilities that are controlled by Enemed.

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