The only place with fixed fuel prices
in Malta cheapest in Europe
THE liberalisation of fuel prices could see a dramatic increase
in the price of fuel if government duty remains at current levels.
Half of the price, Maltese diesel car-owners pay, is government
duty while duty on unleaded petrol amounts to 35%.
The problem for motorists would be compounded further if Enemalta
retains its monopoly in the fuel sector.
last budget the Finance Minister suggested that fuel may start
to be charged at market prices. Fuel prices are fixed, irrespective
of their market fluctuation. In this respect, Maltese motorists
have stable fuel prices from month to month, contrary to what
happens in other countries. The increase in fuel prices, experienced
in recent years, have all been due to increased government duty
and VAT. This state of affairs is sustained by government subventions
to the state owned company.
Malta costs 20 cents per litre and is the cheapest diesel rate
in Europe. However, Enemalta, the state owned fuel supplier is
currently losing on diesel because it is not being priced at market
the fuel sector may make the operation cost worthy for Enemalta,
however the main worry is that government duty would distort the
impact of liberalisation.
by MaltaToday, GRTU President Carlo Cini said that he was not
against liberalising the fuel sector, as long as government does
not introduce a minimum benchmark.
government says that the price of petrol or diesel cannot fall
below a certain amount irrespective of market fluctuations, than
the GRTU will certainly be against liberalisation", Mr Cini
petrol and diesel prices for April.
2001 Source: AA (Automobile Association)
In the GRTUs
document, Proposals towards a Better Business Environment
in Malta, the union goes one step further in suggesting
that short periods of price upswings due to international market
forces, should be counter-balanced by a reduction of fuel taxes.
argues that the combined impact of fuel taxes, motor vehicle registration
taxes and road taxes put Malta on the top rung of high fuel and
road taxes. The impact of these high taxes causes high unnecessary
costs to many businesses.
If fuel is
charged at international market prices and Enemalta retains its
monopoly motorists could feel a large pinch in their pockets.
The company would retain any profit it deems fit, government would
continue to reap its taxes while motorists would end up footing
the whole bill with no alternative to turn to.
to information obtained from the International Automobile Association
(IAA) Malta has the cheapest diesel rate in Europe and with unleaded
petrol at 37 cents per litre it compares favourably with the average
of average fuel prices for the month of April reveals that UK
motorists pay the heftiest prices with both diesel and petrol
standing at 50 cents per litre.
petrol cars are cheaper to drive in Malta then France, Germany
and Italy while Greek motorists have the cheapest petrol rate
at 31 cents per litre.
the rates for petrol and unleaded petrol in Malta are the same.
In most EU countries petrol is no longer available and if Malta
will pursue membership, petrol engines will have to be phased
at the beginning of May by the National Statistics Office show
that the number of licensed motor vehicles in Malta stood at 248,270.
More than 73 per cent of these are private vehicles. The number
of commercial vehicles stands at 43,257. Motor cycles registered
a constant increase in the first quarter of 2001 and now add up