The price of petrol and the Maltese consumer

The Government of Malta and certain news media insist that the cost of petrol and diesel in Malta are still well below the EU average. Different calculations produce different conclusions but what interests the Maltese consumer is the money he / she has to fork out to purchase a litre of petrol or diesel.

I agree with the leader of the Nationalist Party, Adrian Delia, that families and businesses are suffering due to Government’s lack of planning.

Notwithstanding the promises regarding energy prior to the General Elections of 2013, the Government failed in its policy regarding energy.

The UHM Voice of the Workers was correct in requesting Government to immediately compensate workers and their families and pensioners through a mechanism agreed upon between the social partners.

One must not forget that, apart from the hefty increases in petrol/diesel prices effected on 1 August, recently we were burdened with increases in the prices of bread, milk and postage rates, amongst others.

Apparently the Government and those news media that claim that the price of petrol and diesel in Malta are still well below the EU average, are basing their calculations on the weighted average margin published regularly by the European Commission. Such a calculation is carried out by countries due to the fluctuation in the international oil prices. Such weighted average is arrived at by considering the stock held by the countries concerned and the price it was purchased to which is added any new consignments of fuel puchased by the respective country together with the new prices. Such calculation establishes the weighted average margin.

Such calculations do not apply to Malta since – while the price of fuel in Europe are changed regularly due to the fluctuations in the international price of oil – fuel prices in Malta are kept stable for a longer period in order to safeguard stability. Since these calculations do not apply to Malta, comparisons affecting the Maltese consumer should be carried out with actual prices of fuel in the different EU countries on a given date and not with the weighted average margin.

The attached table, Columns A and B, shows the weighted average margin published by the European Commission on the 29 July 2019. This table confirms that the price of petrol for the Maltese consumer – inclusive of the 5c increase per litre effected on the 1 August – is two cents higher than the actual average throughout the European Union as at the 29 July 2019 (vide Column C) and even three cents higher than the weighted average margin (vide Column B).

The table also shows that, as on the 29 July 2019, the consumers in 16 EU countries purchased a litre of petrol less than the consumers paid in Malta, inclusive of the increase of the 1 August, whilst only consumers in 11 EU countries purchased a litre of petrol higher than the price in Malta.

The price of a litre of petrol for the Maltese consumer is neither less than the European average nor is it less than the EU average. Most probably the best of time

“L-Aqwa Żmien” is yet to come.