Me fuel prices: the factors at play

is really going on.

There is no way of knowing with certainty what factors are contributing to the breakdown of the current prices, but it must be said that no effort on the side of the government has been made to break down such factors.

A hedging agreement made between de facto energy minister Konrad Mizzi and the Azerbaijani state-owned oil company SOCAR was heavily criticised for costing tax payers some €11 million, following the plunge in the international price of oil. While this can be put down to an error of judgment, as it is impossible to predict international oil prices with certainty, the sequence of events which followed resulted in the Opposition and other government critics make corruption allegations.

The discovery that Dr Mizzi, together with the Prime Minister’s chief of staff, Keith Schembri, hold potential wealth concealing structures in the financially secretive jurisdiction of Panama led some to believe that they engaged in corrupt practices. Concrete proof of such claims has failed to materi- alise.

In the meantime, a Chinese energy company called Shanghai Electrics bought a minority stake in Enemalta, providing the state power station with a much needed injection of cash.

Proof of any wrongdoing in this regard has not been brought to light, but considering the multitude of factors that contribute to the final price of fuel, and the complexity of the issue, the government should offer up a detailed explanation of how the prices are set – all in the name of transparency and accountability.