Malta: No evidence to warrant fuel cartel probe

The competition watchdog has dismissed calls for an investigation into the possibility of a fuel cartel meant to stifle competition among suppliers, insisting it had no evidence warranting such action.

Suspicion of possible collusion was raised in the wake of the Competition Office’s decision in a case in which the owner of M&N Camilleri petrol station in Rabat revoked a diesel price cut after being pressured to do so by his supplier, San Lucian Oil Company Ltd, a member of the Falzon Group Holdings Ltd.

It also emerged that other station owners had complained with the same supplier about the Rabat fuel station owner’s decision to cut the selling price of diesel. The findings raised concerns among consumer bodies as well as market experts about the possibility of a cartel whereby all parties would agree to keep the same price.

Reacting to the findings, the Consumer Association had expressed its disappointment that the watchdog focused exclusively on this case, despite its request to look at the bigger picture. In his reaction to the ruling, Mario Camilleri, of M&N Camilleri petrol station, had told this newspaper that competition was being stifled by the fact that diesel suppliers were going by the prices set by the State-owned

In his reaction to the ruling, Mario Camilleri, of M&N Camilleri petrol station, had told this newspaper that competition was being stifled by the fact that diesel suppliers were going by the prices set by the State-owned Enemed. Mr Camilleri had called for a ban on such practice in a bid to have a liberalised market from which consumers would benefit.

Full Content: Times of Malta

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