Price of Fuel on Local Market

GRTU urges Energy Regulator to Declare Publicly what action is being taken by Malta Resources Authority to safeguard the interests of economic operators who are being broken by the continuing and high increase in the price of diesel.

GRTU urges Energy Regulator to Declare Publicly what action is being taken by Malta Resources Authority to safeguard the interests of economic operators who are being broken by the continuing and high increase in the price of diesel.

Mr. Austin Walker
Chairman
Malta Resources Authority

Price of Fuel on Local Market

Enemalta Corporation as the monopoly in Malta responsible for fuel, increases the price of diesel and other fuels according to a formula decided upon years back by government. The repeated increase in the price of fuel, but more especially diesel, is having a drastically negative impact on the economy. Indeed in addition to the increase in VAT and the introduction of Eco Tax, the increase in the price of diesel is one dominating factor behind the increase in the rate of inflation. Malta should not be suffering from a high inflationary rate as the state of the national economy as reflected by the level of national output does not correspond to an inflationary situation. The ripple effect of diesel price increases continue to be felt for months and the cost structure of many basic services have now changed drastically due to an almost doubling of diesel prices over a relatively short period of time.

GRTU has already requested MRA, as the National Energy Regulator, to insist on an impact assessment prior to the condoning of price increases. The perception of economic operators in Malta is that the increases are being imposed as if the Energy Regulator does not exist. This is not a situation that GRTU can condone. GRTU strongly believes in the role of the Regulators in a free market economy and will not tolerate a situation where the Regulators become just another part of the State apartnik. We have this situation already with the Office of Fair Competition and MRA should not steer in this direction.

GRTU is now urging MRA to state publicly its position on the issue of diesel price increases and explain what action the Regulator has taken to ensure that the State Monopoly does not impose its will on the market irrespective of the economic and social consequences of persistent and hefty fuel price increases. GRTU expects you also to declare what action you have taken to ensure that the State Monopoly, Enemalta Corporation, utilizes the most economic, professional and efficient systems to ensure that the whole process from procurement to delivery of fuels leads to the production of the best possible and most competitive price of fuels on the Maltese market. GRTU considers the energy question is one important factor causing the current state of disequilibrium in the Maltese economy.