Gozo Channel is paying more than twice as much to fuel its three vessels following a decision to change supplier, The Sunday Times of Malta has learnt.
The former Gozitan marine fuel supplier, Go Fuels, which serviced the vessels for almost 25 years, was replaced last May, sources close to the company said.
A new long-term tender is still awaiting adjudication, but until it is decided, Gozo Channel started buying its fuel through a two-month quotation, which has left the company paying almost €7,000 per week more.
Though Go Fuels also participated in the latest quotation and once again offered the cheapest price, Gozo Channel disqualified the company on grounds that it failed to meet technical requirements.
Instead, Gozo Channel awarded the short-term supply to AC Fuels – owned by the sons of Frank Sammut – who is accused as being one of the masterminds of the Enemalta oil scandal. From this month, Qormi-based Cassar Fuels Ltd is supplying the ferries.
While the former supplier is based in Gozo and used to fuel the company’s vessels through a barge in Mġarr, the new supplies provide fuel through three bowsers – which need to be transported from Malta every week.
“The costs of this are also being carried by Gozo Channel,” the sources added, pointing out that the company was making a large operating loss in spite of the high passenger load.
Contacted by this newspaper, Go Fuels confirmed that its latest offer was refused by Gozo Channel even though it was the cheapest.
Asked about the technical requirements, the spokesman said: “It seems that what was alright for the past 25 years is suddenly not OK now for Gozo Channel.”
“We don’t wish to comment further at this stage. Everyone can reach their own conclusion,” he said.
Figures obtained by this newspaper show that while Go Fuels offered to supply fuel at €50 per metric tonne, the supplier chosen by Gozo Channel means fuel costs €116 per metric tonne.
Since Gozo Channel usually takes 100 tons of fuel a week it is now paying almost €7,000 extra.
Aggrieved companies had the opportunity to object but no one did
When contacted, a Gozo Ministry official declined to say how much Gozo Channel was paying for fuel and what it used to pay until the change of supplier.
However, he insisted that the company was still buying its fuel from the cheapest bidder.
When it was pointed out that Go Fuels’ offer was considerably less than the current supplier, the ministry said the company had been disqualified for technical reasons and its offer was therefore not considered.
“Go Fuels was disqualified because it did not comply with all technical specifications, as specified in the tender document,” the official said.
“The company did not provide a crucial element in the Bunker Delivery Note, which eliminates issues of discrepancies between fuel ordered and fuel supplied,” the official explained.
“Aggrieved companies had the opportunity to object but no one did,” he said.
Asked why the company did not file an official objection, a spokesman for Go Fuels said: “The company had no time and money to waste on something that had already been decided.”