Value of stocks affected domestic price of fuels – Enemalta

Enemalta says prices for domestic consignments of petrol and diesel were not solely determined by the international price of fuels, after Labour MP Charles Mangion yesterday accused the national corporation of not reflecting international reductions in price in the domestic price of petrol and diesel.

Enemalta said there were no petrol consignments in April, which means the international price of April for fuel was not reflected in domestic prices. "There is no basis in comparing the prices of April with the July price, since the April price had no impact on our calculations."

Enemalta said the July international price of petrol in US dollars was 3% cheaper than May's but this was not the only factor determining the domestic price of petrol and diesel. "Apart from the international price of fuel one must consider the movements of value in stocks from the previous month," a spokesperson for the corporation said.

On his part, Mangion said the international price of petrol in March was practically identical to April's, insisting that the July price was 11% cheaper than March's, on which the domestic price for the May fuel consignment was based upon.

"Enemalta, as well as the Malta Resources Authority, must explain how the international price went down by 11% when the local fuel was only cheaper by 0.7%," Mangion said.

In the case of diesel, Enemalta said the reduction in the average price of diesel between May and June was of 9.83% in US dollars, contradicting claims by Mangion that this was 16%. Enemalta said the average price of diesel of May was $957.30 per metric tonne compared to June's which was $863.22 per metric tonne.

Mangion insisted that a comparison of the international price in dollars for diesel in June, with that of April, showed a 16% decrease, or 12% in euros. "Again, Enemalta and the MRA should explain how a 12% decrease was reflected domestically in a 3.6% reduction for diesel between May and August."

Labour MP Charles Mangion has said the recent increase in fuel prices announced by Enemalta do not tally with the international price of oil in July.

"The international price of oil in US dollars in July was 17% cheaper than that of April, on which the local petrol price for May was based; while the international price in July in euros was almost 11.5% cheaper than April's," Mangion said.

The MP said the 0.7% reduction in the local price of petrol between August and May of 2012 did not reflect the 11.5% reduction in the international price, in euros, for the period that the local prices for May and August were based on.