The Malta Independent 9 May 2024, Thursday
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Fuel Woes: A stalemate headed in the wrong direction

Malta Independent Monday, 28 March 2011, 00:00 Last update: about 12 years ago

The country is being forced to prepare itself for the consequences which could potentially disrupt our routine over the next few days, as talks between Enemalta Corporation and petrol-station owners seem to have reached a stalemate and are heading in the wrong direction.

It has been reported that petrol-station owners are meeting tomorrow to decide on a way forward, including the threat of action which could possibly escalate and make employees redundant.

The issue at stake concerns the demand made by petrol-station owners for an increase in profit margins to make good for the required investment to upgrade service stations at a proposed cost of e25 million. According to the practice in place, petrol-station owners are claiming that their selling price and profits are capped, and yet they are required to fund the e25m refurbishment process to be in line with European Union standards that require an extensive overhaul of the existing infrastructure.

Petrol-station owners could be right in their claims for a higher profit margin, but their threat of action is going to directly affect motorists and businesses rather than the supplier, Enemalta, which is refusing to cede and accept their claim for higher compensation.

First and foremost, however, petrol-station owners have to assess and analyse the impact that their actions will have on third parties who are not involved in the dispute, and thus should not be held hostage to make their claim for more profits. It would hardly be surprising should petrol-station owners feel that they have little or no public support or sympathy when considering the latest increase in fuel prices, which has significantly increased costs for households and businesses. Moreover, the mere mention of possible action by petrol stations is bound to create unnecessary inconvenience, as motorists queue to fill up their vehicles in an attempt to minimise the inconvenience should petrol-station owners live up to their word and start reducing the service offered.

In the sphere of industrial relations, it is a known fact that the threat of strike action is the most powerful tool. In theory, the threat should have provided sufficient leveraging power for petrol-station owners to force Enemalta Corporation to revise its position. Should the current stalemate persist, however, and petrol-station owners move on to action, then their leverage power would be lost and time would be working against them to back down from their actions to minimise the inconvenience being caused to motorists and business.

Without doubt, this issue is bound to be analysed in further detail during the next few days, as petrol-station owners are understood to be adamant on their demands for an increase in the profit margin on every litre of fuel sold.

To all intents and purposes, the country is being forced to witness a showdown between petrol-station owners and Enemalta. Eventually, should the action start, it could also involve government and the regulatory authorities. Irrespective of the issue at stake, this country cannot be held to ransom for an issue which concerns solely petrol-station owners and their profit margins.

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