Fuel pump relocation could raise ‘artificial value’

A new MEPA policy enabling the relocation of existing petrol pumps to a greater variety of sites outside development zones, risks raising the “artificial value” of existing fuel station licences, the Malta Developers Association has warned.

The issue was raised in submissions the MDA made to the authority, before the new policy was approved this week.

While entirely new fuel pumps will only be sited only in designated industrial areas, relocated petrol stations can be moved to rural ODZ sites if they do not have any particular ecological importance.

Last year MaltaToday reported that a number of petrol station licences were being sold thanks to a rise in their value amid speculation that the new policy will allow larger petrol pump stations in ODZ sites.

The new MEPA policy effectively encourages the relocation of petrol pumps from urban areas, by allowing them to relocate in all ODZ sites except in areas of high landscape value, good quality agricultural land and sites of ecological importance.  

The relocation is being encouraged to raise standards and address safety concerns.

Developments in these ODZ areas cannot exceed 3,000 square metres.    

On the other hand new petrol stations with no previous licence are restricted to semi-developed areas like quarries or industrial areas, even those that are ODZ. In these areas developments can exceed 3,000 square metres.

But the MDA says the proposed discrimination will encourage an increase in the artificial value of existing fuel station licences.

“The relocation of existing fuel stations from residential areas should be incentivised, [but MDA] feels this does not justify the proposed discrimination. To ensure that this incentive is not understood as a ‘right’ to relocate fuel service stations from a residential area to an ODZ area as is being proposed, it should be made clear that this is a concession that is given only for a time window of, say, three years.

“In this way, pressure is also brought upon fuel service stations in residential areas that would know that the possibility of relocation to an ODZ area is not an indefinite permanent policy that would result in an automatic increase in artificial value in the licence of such stations.”

MEPA says the policy gives 10 location options for all fuel stations and a further three for relocated fuel stations. The additional uses are ODZ land, disused quarries and land on which a permit for non-agricultural uses has already been issued.

MEPA also insisted that no “right” to relocate is contemplated and each application will be assessed on its own merits. Moreover MEPA claims that it is also receiving a good number of applications to upgrade existing fuel stations so that they satisfy European standards.