The European Commission yesterday closed its long-standing dispute with Malta over the monopoly previously enjoyed by state-owned Enemalta on the importation, storage and wholesale of petroleum products.
Such products include petrol, diesel, LRP and gas.
The lifting of infringement proceedings came about after the Commission received assurances that licences will be issued to other operators who meet the associated legal requirements.
Under its Accession Treaty, Malta had been required to adjust its legislation by 1 January 2006 to provide for the liberalisation of the importation, storage and wholesale markets for petroleum products.
The Commission noted yesterday that although the liberalisation of the market had been required by the beginning of 2006, Malta had met the requirement in October 2007 only because it had threatened to take Malta before the European Court of Justice unless it adjusted its petroleum products regime within three months.
Now, the Commission noted yesterday, Malta has put new procedures in place allowing market participants, other than former state monopoly Enemalta, to apply for licences. By October, the Commission observed, Malta had adopted legislative measures creating a framework for a new licensing procedure allowing other companies to apply for licences. The necessary implementing measures have also been published.
Speaking yesterday, EU Competition Commissioner Neelie Kroes was confident the change in market landscape would bring added benefits to Maltese consumers.
“I am pleased that after some hesitation Malta has decided to open its fuel market to competition,” she commented yesterday.
“Malta made the commitment to create a level playing field in this important market when it joined the European Union, and I look forward to seeing the benefits competition will bring – ultimately to the benefit of Maltese consumers.”
A number of regulations related to the liberalisation of the fuel market were published on 8 June. In October, a Bill amending the Malta Resources Authority Act in such a way as to pave the way for the market’s liberalisation, had been debated and passed by Parliament.
In a statement issued this summer, in reply to a European Commission second warning on the issue, the government had explained it “believes that for liberalisation to be successful and advantageous for Maltese citizens, it cannot take place in a regulatory vacuum. Once the necessary legal framework is in place, petroleum products will start to be traded in line with the EU Treaty”.
Under its Accession Treaty, Malta had been required to ensure petroleum products could be traded through a licensing system by 1 January 2006, removing the state-owned Enemalta as the sole licence holder in Malta.
Under the EC Treaty, all member states are obliged to adjust any state monopolies of a commercial character so as to ensure there is no discrimination between nationals of member states regarding the conditions under which goods are bought and sold.