A proposal to raise the price of diesel across the EU – three cents per litre in Malta’s case – was thrown out by MEPs due to the current record prices at the pumps.

The European Commission’s proposal, which is still up for discussion at Council level, wants member states to eliminate the current tax advantage on diesel, which is keeping it a lower price than petrol.

Luxembourg EPP rapporteur Astrid Lulling agreed with the logic behind the plan, which shifts taxation on to environmental criteria to favour climate change policy, instead of the current system based on minimum charges on volume.

But she said it was impossible for the EU’s public to accept another hike in fuel prices in the current climate.

“The principle is right but risks having concrete consequences for consumers. Diesel prices will rise in all member states. How could our citizens understand this?” Ms Lulling asked.

The Commission’s proposals, tabled last year under the Energy Taxation Directive, aimed to change how the EU taxes fossil fuels.

Fuels would be charged a minimum of €20 per tonne of carbon dioxide (CO₂) emitted, as well as on their energy content, according to an index of energy efficiency. The more polluting and less energetic types of fuel would be taxed the most under the new system.

Although the proposal makes environmental sense, it was criticised by various member states because of the impact it would have on drivers’ pockets.

Malta currently charges €0.38 per litre on diesel (EU minimum – €0.33 cents per litre) and €0.46 per litre on unleaded petrol (EU minimum – €0.359 cents per litre).

This means the price of diesel would need adjusting upwards to reach the new minimum indicated – €0.41 per litre. The current price of excise duty on petrol is already in line.

The discussion will now continue at member state level. Unanimous agreement is necessary for the proposal to be approved.