PD MP Godfrey Farrugia questioned the freedom of Malta’s fuel market, highlighting that wherever one goes, fuel prices are the same.
Farrugia recently filed a number of Parliamentary Questions regarding the fuel market, highlighting that more information should be made publicly available, given that Enemed is the main fuel player on the island.
In one of the questions asked to Energy Minister Joe Mizzi, Farrugia asked for the name of the company which won a tender by Enemed for the provision of petrol to the local market between March and August.
In response, the minister said that Enemed is a commercial company that operates in a competitive market, and that offers for the provision of petrol for the local market are controlled by commercial regulation “as the petrol bought is just part of the final product sold on the market.” The minister said that the requested information is commercially sensitive for Enemed.
“I believe that consumers have every right to know from where Enemed is purchasing its fuel. After the contract has been concluded, there is nothing left that is commercially sensitive,” Farrugia told The Malta Independent in reaction to the minister’s response.
Another question posed by Farrugia relates to why Enemed does not publish its calls for the supply of petrol on the EU site ted.europea.eu – Tenders electronic daily, to which Minister Mizzi said that Enemed Co Ltd uses its own procurement process for the purchasing of fuels, which is approved by their auditors and the Auditor General. “Any company interested in participating just has to contact Enemed, and it will be included in the list of companies that a tender document is sent to.”
Lastly, Farrugia also asked whether government intends to offer more petrol storage facilities for local agents of foreign oil companies, in order for them to be able to import, store and sell petrol to the local market, “thereby ending the monopoly by Enemed”
Minister Mizzi replied that there was a petition filed with the EU Parliament Petitions Committee by a Maltese citizen, where the response given was that the EU Commission clearly states that in Malta’s case (Enemed), there is no breach of Article 37 of the Treaty of the Functioning of the EU (relating to State monopolies).
Farrugia, speaking with The Malta Independent, questions this statement, and asked: “do we really have a free market? I’m not speaking about whether we have a fair price or not on petrol. That would be up to the MCCAA. But how can anyone in Malta complain about the price of petrol, when there does not seem to be a real free market. Do you see different prices at different stations?”
“If an entity is interested in purchasing petrol, and wants storage facilities in Malta, it needs to hire those storage facilities from Enemed, which would be its competitor.” He stressed the need to ensure that consumers are given free choice.