Petrol price is plummeting in the EU. Photo: Jason Borg

Pressure is increasing on the government to explain why fuel prices here remain high despite a continuing free-fall in the rest of the European continent.

Joe Falzon, who used to head Enemalta’s fuel procurement advisory committee until 2005, told Times of Malta that, although hedging was an important tool used by many fuel buyers, one had to be as flexible as possible, particularly when prices on the international markets were as volatile as they were now.

“I am not against hedging because this is an important tool if used properly. However, one has to be on the lookout and not be so tied up to one rigid policy,” he said.

Noting he did not know why Enemalta was not explaining the situation with regard to fuel purchases, he said it made more sense to be flexible so that, while keeping the option of hedging open, one could easily switch to the spot market (daily situation) when international prices were falling.

Read more in Times of Malta.