UHM questions liberalisation of fuel market

Union Haddiema Maghqudin (UHM) has expressed its concern over a recent case where a specific petrol station was not allowed to reduce its fuel prices. A few hours after prices were reduced, the petrol pump was put under pressure by a private company to change its prices back.

“In view of this event, we can’t help but wonder whether the fuel market is indeed liberalised as stipulated by the rules of the EU, or whether it is dominated by a state entity which is determining local prices despite the existence of other operators in the industry.”

The UHM said that if the market was in fact being controlled, then this would go against the basic principle of a democratic liberalised market where consumers are given an opportunity to choose.

“It’s clear that the right to choose was not respected when the petrol station in question was not allowed to reduce its prices,” said UHM.

With this and the protection of consumer rights in mind, UHM has urged the MCCAA to investigate whether the state’s agency that was founded in October 2014, has a dominant position in the local market.

The Union emphasised its belief that the EU’s free market rules should be respected, particularly when the market offers a possibility of price reduction for its consumers.

“We also encouraged the Government to address the MCESD and tell the public how the fuel market is functioning and how prices are being decided. It is important for us to know how this sector is regulated and whether it is following EU rules.”

“The Government should also explain the role of the state agency which buys crude oil, and whether there are any other entities dealing in petrol and diesel in the country.”

UHM added that the government should also explain how much money Enemed has borrowed, and whether this loan has ultimately affected fuel prices in the country.

“The Government should also be clear about the hedging agreement and how long we will be tied to this agreement, and whether all entities in the industry are included in this agreement.”

UHM has also asked the government when the country will embark on a new agreement with cheaper prices through Enemed.

“Although it is clear that we cannot end old agreements before their time is up, it is Enemed’s duty to ensure that the country can benefit from new cheaper prices to reflect international prices as soon as possible,” it said.

UHM believes that this should be discussed well at MCESD and  it urges the government to follow its wishes, and support and protect human rights.