IP/07/1952

Brussels, 18 December 2007

Competition: Malta opens petroleum products market to competition; infringement procedure closed

The European Commission has closed infringement proceedings against Malta concerning restrictions on the import, storage and wholesale of petroleum products as Malta has now put into place new procedures that allow market participants other than former state monopoly Enemalta to apply for licences. Under the Accession Treaty, Malta was required to adjust its legislation by 1 January 2006. However, this was only achieved after the Commission decided in October 2007 to take Malta to the Court of Justice unless it adjusted its petroleum products regime within three months (see IP/07/1544).

Competition Commissioner Neelie Kroes said: "I am pleased that after some hesitation Malta has decided to open its fuel market to competition. Malta made the commitment to create a level playing field in this important market when it joined the European Union, and I look forward to seeing the benefits competition will bring – ultimately to the benefit of Maltese consumers."

Under Article 31 of the EC Treaty, Member States are obliged to adjust any state monopolies of a commercial character so as to ensure that there is no discrimination between nationals of Member States regarding the conditions under which goods are bought and sold.

According to the Accession Treaty, Malta had to ensure that petroleum products could be traded through a licensing system by 1 January 2006. Currently the state-owned company Enemalta is the only company holding such a licence. In October 2007, Malta adopted legislative measures to create a framework for a new licensing procedure to allow other companies to apply for a licence. The necessary implementing measures have also been published. The Commission has been assured by the Maltese authorities that licences will be issued to operators who meet the legal requirements.
More general information on infringements is available at:

http://ec.europa.eu/community_law/infringements/infringements_en.htm