From 75c to €1.44: taxes make up almost half of fuel prices

Figures seen by MaltaToday as published by the European Commission's Energy Oil Bulletin on 2 July reveal that not only domestic fuel prices were the least to go down among the 27 EU Member States, but that taxes make up almost half of the fuel prices.

A third point which emerges from the data is that Malta's fuel prices are the highest of all with 75c per litre for unleaded and 79c per litre for diesel, excluding taxes.

Taxes included, the maximum retail price per litre for unleaded and diesel almost doubles reaching €1.44 and €1.38 respectively, marking a tax difference of 69c for unleaded and 59c for diesel.

According to the same oil bulletin, the EU average for unleaded stands at 67c while that for diesel is at 70c. In other words, Malta's unleaded price is 12% higher than the EU average while that of diesel is 13% higher, always excluding taxes.

Enemalta is the only importer of petrol and diesel for sale at petrol stations. Fuel prices - adjusted every month - for the month of July decreased to €1.44 for unleaded and €1.38 for diesel.

But while consumers welcomed the decrease after the hefty price increase in April, the decrease was still the lowest among the 27 countries. Because while domestic prices registered a €0.07 decrease for unleaded and  €0.01 for diesel when compared to April, EU prices dropped an average of €0.10 and €0.09 respectively.

In its statement announcing the July prices, Enemalta said the retail price reflected the prices fetched by the energy provider for the latest shipments of imported fuel.  While the latest unleaded consignment was based on June Platts prices, there were no diesel consignments during the month of June and the decrease reflected recorded movements in stock levels.

Enemalta also boasted of petrol and diesel prices - tax included - in Malta ranking 14th and 16th cheapest respectively out of the other 27 European countries.

However, Labour leader Joseph Muscat has accused the energy provider of not being honest, insisting that it has misled its consumers on the true standing of the domestic prices when compared to the EU countries.

"I expect MRA to investigate Enemalta's action and I expect it to shoulder the responsibility for failing to intervene before. MRA's ineffectiveness of protecting consumers only makes it a lapdog," Muscat insisted.

In comments to MaltaToday, Malta Resources Authority Chairman Anthony Rizzo said that this was not the first time that Muscat accused MRA of failing to carry out its job as a regulator.

"One must keep in mind that similar accusations were levelled by the Opposition against MRA in the past, however when given the opportunity to be presented with the facts, the opposition failed to accept the invitation, hence missing the opportunity to confront the Authority on its findings," Rizzo said.

Asked whether MRA would be investigating Enemalta, Rizzo said that this was a normal procedure it carried out:  "On a monthly basis the Authority recieves data from Enenalta about the fuel prices. It is normal that the Authority requests clarifications or explanations of their workings. This is an ongoing process."

But while Rizzo has justified Enemalta's fuel prices by referring us to the corporation's statement, economist Karm Farrugia has suggested that the price formula "is not being strictly adhered to".

"Government is not being 100% in the open with its formula and I believe that this formula should be subject to public scrutiny," Farrugia told MaltaToday.

Farrugia argued that a board, made up of MCESD members and other social partners, should be set up to make sure that government was faithfully adhering to the formula.

"The issue at stake here is why was the reduction lower than expected?" he added.