Petroleum

EC calls on Malta to adjust import monopoly for petroleum products, writes Clare Watson in the Energy Business Review:

The European Commission has called on Malta to adjust its monopoly for the importation, storage and wholesale of petroleum products, after the country failed to comply with competition legislation that should have been adopted on its accession to the EU. The European Commission's (EC) formal request follows Malta's failure to comply with the EU Accession Treaty, which forbids discrimination between member states' nationals with regard to commercial state monopolies.

The commission said that, although the treaty obliges member states to adjust any state monopolies, no trading licenses have been issued in Malta and Enemalta Corporation is still the only company authorized to import, store and supply petroleum at the wholesale level for the national fuel market. Malta was required to comply with this objective of the treaty no later than January 1, 2006, and now has two months to confirm to the EC that it has implemented the measures required to fulfill its obligations under the Accession Treaty.

EU competition commissioner Neelie Kroes said: "Malta is maintaining discriminatory measures in favor of the commercial state monopoly which stops any potential new entrants from getting into the wholesale petroleum market. On accession, Malta committed itself to adapt its rules. Eighteen months after this should have been done, it is clearly now urgent that the necessary changes are made." The EC said that, although Malta has claimed that the necessary legislative measures are under discussion, they have not been adopted so far