Unfortunately, Malta, as yet, is not a producer of black gold.  Various attempts were made by different administrations to tap this resource.  From time to time oil exploration missions were launched.  Sea and land drillings did not give us the desired results.  During the passage of time international experts in the field were engaged to help us, try our luck, identify the best locations where to place the hired enormous drilling machines.  

In 1998 Malta spent well over €30 million in drilling a well in Gozo called “Madonna taz-Zejt”.  Although, for a time, we were led to believe that there was hope, at one stage the drilling stopped and the heavy equipment was dismantled.  Currently the Labour Party deputy leader Toni Abela is providing government legal counsel on oil exploration.

Let’s hope for the best.

Until Malta hits the right artery we will have to buy this product from fuel suppliers at market prices.  So far, notwithstanding, Malta’s close relationships with various major oil producers, vessels supplying tons of fuels issue an invoice and bill Enemed Co Ltd at market prices.

There are no freebies. Business is business.

Whether this commodity is bought through different mechanisms to ensure the best prices Enemed Co. Ltd cannot cushion price fluctuations.  However, Enemed Co. Ltd should not be allowed to make exorbitant profits.  Enemed Co. Ltd has a social responsibility.  

Of course price stability is necessary for long term business planning however fuel prices should not be kept artificially high to honour this commitment.  This does not make any business sense.  It is now clear the price stability promise was play on words.  What kind of economic stability is this?   Entrepreneurs and consumers are paying through their nose.  Where are the gains and the logic here?  

Paying high prices for international cheaper fuels is day light robbery.            

At the beginning of this year Enemed Co Ltd announced that the prices of petrol, diesel and kerosene have been revised.  Unleaded petrol was reduced from €1.35 to €1.32 per litre saving €0.03, diesel from €1.26 to €1.22 per litre saving €0.04, kerosene from €1.26 - €1.22 per litre saving €0.04.  No change was announced in the gasoil for heating. At a glance this looked reasonable.  

However, a quick Google search reveals that the fuels price reduction is a pittance when taking into account that the international fuel prices plummeted to 2004 prices in 2015.  

Last Friday, rightly so, Anton Borg, Chamber of Commerce, President called for further energy reductions during a consultation meeting with the Prime Minister.  In his speech Mr Borg made two watertight observations. On one hand he asserted that the current energy tariffs reflected a time when fuel price was over $100 per barrel.  On the other hand he counselled for a better definition of the term ‘stability in prices’. 

He is right on both counts.  

It is obvious the current energy rates do not reflect the fuel market price which currently is hovering in the $30 per barrel bracket. The exorbitant profit emanating from the sheer drop in the international fuel prices is not being passed on to the consumers.  It is being siphoned by Enemed Co Ltd.

From an entrepreneurial point of view this is an unwarranted higher cost. To safeguard their operations and competitiveness in an already tight market the current exorbitant energy cost is adding unnecessary pressure on the operations and pushing some entrepreneurs to cut corners.

Consumers likewise are also hit negatively due to the inflated fuel costs. This will lead to less cash in consumers’ pockets and higher prices when buying commodities and services on the other.  In a nutshell people are having their standard of living eroded.  

No wonder the number of people at risk of poverty is increasing.    

Economic growth can only be sustained if competitiveness is well secured.  If this is in one way or another put at risk the results would be devastating for entrepreneurs, their employees and their dependants.  Malta’s competitiveness is not safeguarded with politically blurred perspectives and empty promises.  

Partisan politics do not come into the equation.    

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