Wrong, Rob!

In a ‘normal’ country, prices at the pump are adjusted as the price of oil changes, often several times a week.

For those who point out that wages in Malta are lower than countries which sell fuel for less, I would like to point out that there is absolutely no connection between the wage levels and fuel prices.

Fuel prices at the pump should reflect the COST of buying the fuel from international sources.

The issue of wages is an internal matter and not the least dependent on price of oil.

Prices in Malta are the third highest in the EU, is because of wrong predictions from the government side and hedging at high prices.

Depending on how much longer the present agreement lasts, the paying public could be in for an ‘adjustment’ when oil prices start to go back up.

That will be the carrot for this year’s election. When will the electorate learn? But I guess we are still Arabs and not Europeans so it’s hard to learn.

Averaging things out works better then excluding large cities.

Check this table for averages http://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage and I would argue we prefer to compare ourselves with the top 20 countries, not the lower regions.

Compare this with gas prices and you see we are totally being taken for a ride.

Malta actually has pretty good wages when compared to countries in the south and east. In fact, if you exclude the regions with large cities (ex. Rome, Ljubljana, Milan, Warsaw, Barcelona) Malta has better wages than most.

The question to ask there is “for who?”

Considering the barriers to entry, mainly infrastructure and initial capital, I don’t foresee many businessmen eager to invest in this business.

But I believe there is another organisation, apart from the government, supplying fuel to the pumps.

Does this supplier hedge his purchases with Enemalta/government? Wouldn’t this supplier be able to price his fuel differently if his purchases are cheaper? Or is he making a quick (massive) buck at the pumps too?

L-aqwa fl-Ewropa?

More like “LOLa fl-Ewropa.”

“In fairness the drop in barrel prices today take 6 months to effect the consumer in the street.”

Wrong. The drop in barrel prices has an immediate and visible effect here in Romania, where I live, of all places.

You see the drop in prices in the street on the boards displayed outside most petrol stations where the prices change on a daily basis.

That said, it is still curious as to why Malta must have amongst the most expensive fuel rates.

Perhaps the size of the island does not provide enough bargaining power.

The joke of course is trying to befriend Libya while it is embroiled in civil war.

Qeghdin it-tielet fl-Ewropa? Darb’ohra nigu l-ewwel ghax ahna, we aim high and shoot low.