Fuel prices in Malta have again edged above the EU average over the past month, according to data just published by the European Commission. EU-wide, motorists pay on average €1.27 for a litre of petrol and €1.11 for diesel.

Since the beginning of April, Maltese drivers have been sold petrol at €1.28 a litre and €1.16 for diesel. Since April, there have been instances when the EU average price of petrol exceeded that in Malta, but diesel constantly cost less in Malta. However, due to falling international oil prices over the past four weeks, both petrol and diesel sold in the EU at prices below those in Malta.

“The constantly lower prices at EU pumps for the last weeks indicates that prices in Malta are due for another downward revision,” sources close to the petroleum industry told the Times of Malta.

The last revision of prices was announced at the end of March. When Enemed, the State fuel importation company, made the announcement, petrol in Malta cost 7c a litre more than the EU average and 13c a litre in the case of diesel.

In the face of criticism that the government was keeping fuel prices artificially high to compensate for lower electricity tariffs and boost Enemed’s balance sheet, Prime Minister Joseph Muscat said the government’s fuel policy was based on stability rather than accounting exercises.

He insisted that his government had opted to keep fuel prices at the pump stable for longer periods of time instead of having them fluctuate according to international market prices. Although EU rules state that the importation of fuel and its distribution are liberalised, in Malta the prices at petrol stations are still dictated by Enemed.

So far, it is only Enemed that imports petrol, due to storage restrictions, while some private companies import and distribute diesel. However, those companies still stick to Enemed’s retail prices, and there is effectively no competition in the inland fuel market.

ivan.camilleri@timesofmalta.com