Rabat petrol station forced by Falzon Group to raise diesel price, competition watchdog says

The Director General of the Malta Competition and Consumer Affairs Authority has concluded that the San Lucian Oil Company – a member of the Falzon Group – and a Rabat petrol station, infringed competition laws when the Falzon Group pressured M&N Camilleri fuel station not to cut its diesel price by 2c.

The Falzon Group is one of Malta’s petroleum importers.

The investigation stemmed from a Times of Malta report which said that the Rabat petrol station had scrapped plans to cut its diesel price by 2c after complaining that he was pressured to do so by the fuel supplier.

Mario Camilleri had said the Falzon Group had received complaints from other fuel stations about the price, and that he was warned by Joe Falzon, owner of the Falzon Group, that the increased profit margin given by the supplier in January would be withdrawn, forcing him to put the price back at €1.35.

Specifically, MCCAA director Godwin Mangion said his office had gathered evidence which proves that San Lucian Oil Company and M&N Camilleri Petrol Station were party to a retail price maintenance agreement to indirectly fix the selling price of diesel.

In his 74-page decision, Mangion said that San Lucian Oil Company put pressure on the Rabat fuel service station M&N Camilleri by warning the latter that the increased profit margin promised in January 2015 would be withdrawn.

Subsequently M&N Camilleri Petrol Station responded to this pressure, by reverting to the maximum retail price of €1.35 per litre of diesel, as charged by other fuel stations.

Although the office of competition said it intended fining the Falzon Group, it was taking into consideration various court decisions reached by the Constitutional Court and the Competition and Consumer Appeals Tribunal not to fine the petroleum company.