Updated | Opposition calls on government to publish fuel hedging agreements

A parliamentary motion calling on the government to reduce fuel prices to those that reflect the current global price of oil has been submitted

Shadow energy minister Marthese Portelli has called on the government to publish its fuel hedging agreements.

"As things stand, we cannot confirm whether the high fuel prices in Malta are the result of hedging or not, as the government hasn't published any hedging contracts to prove it," Portelli said, when asked whether she believes in Energy Minister Konrad Mizzi's declaration that fuel prices reflect hedged prices.

"However if, for argument's sake, fuel prices are high because of a hedging agreement, then how come the Maltese government was the only European government that hadn't realised that oil prices were decreasing? The global price of oil started decreasing before June.

"Who advised the government to reach that hedging agreement? We need more information on how the government reached the current hedged prices."

Mizzi has pledged that fuel prices will go down once the government's current hedging agreements expire over the coming months. However, the Opposition appears to be taking this promise with a pinch of salt.

"From experience, Mizzi and [Prime Minister] Joseph Muscat cannot be trusted with what their promises on the energy sector. They had promised not to privitise Enemalta and to build a gas power station by March." 

Upon a request of the Opposition in the Public Accounts Committee, supported by the government members on the same committee, the Auditor General will carry out an analysis of Enemalta’s fuel hedging agreement and how this has impacted prices.

Portelli was speaking after submitting a parliamentary motion calling on the government to reduce fuel prices to those that reflect the current global price of oil.

"The drop in the global oil price is being reflected in fuel prices in all other European countries," Portelli said.

"However we are still paying the same for fuel as we had in 2011. Excluding taxes, fuel is more expensive in Malta than in any other EU country. Including taxes, Malta's fuel is the third most expensive." 

Five EU countries enjoy fuel prices lower than €1

The Nationalist Party today issued a statement to negate some of the claims made on the General Workers’ Union’s (GWU) newspaper L-Orizzont.

“The newspaper has claimed that no country in the EU has fuel prices that are lower than €1, but recent figures show that there are five countries within the European Union that enjoy lower prices than this,” the Opposition said.

According to the Nationalist Party these countries are Poland, Latvia, Lithuania, Estonia and Bulgaria.

“These figures confirm the fact that the prices Prime Minister Joseph Muscat and his government, are keeping in Malta are amongst the highest in Europe, both with respect to petrol and diesel prices.”

Opposition leader Simon Busuttil is challenging the Prime Minister to reduce diesel and petrol prices immediately to reflect the drop in international oil prices.

The Nationalist Party would also like to challenge the GWU to join in the appeal to the government to reduce fuel prices, rather than defend the government’s decision to keep petrol and diesel prices at the highest level in Europe.