Why the price of petrol and diesel in Malta will have to go up?

Marica Micallef

Yesterday, there was a persistent rumour in Malta that the price of petrol and diesel will be going up in the coming weeks. Given the international situation, this rumour is more than factual.

In an article by Reuters, we read that according to France’s pipeline operator GRTgaz, gas flows from Germany to France have stopped since June 15 due to a decrease in Russian supplies.

According to Russian Deputy Prime, Minister Alexander Novak, a stoppage in Russian gas supplies to France might be caused by a shortage of gas on the European market and maintenance on the Nord Stream1 pipeline to Germany’s gas turbines.

When asked by a reporter why gas shipments to France had stopped, Novak responded that the Nord Stream1 maintenance concerns and a gas shortage on the European gas market were likely to be to blame.

In the meantime, the Financial Times tells us that the German deputy chancellor Robert Habeck has told the Germans to “conserve energy as Russia cuts gas flows to Europe”. Germany is facing less gas supply because Russia’s state-controlled gas exporter, Gazprom, has cut flows through the Nord Stream pipeline by 60% in recent days, citing technical issues.  According to Germany, this is a political move.

Still, one is made to wonder how come back in October 2021, the German Ministry of the Interior of the State of North Rhine-Westphalia                         released a video where the German public is asked “Was geht wenn keine heizung mehr geht?”, meaning “What happens when there is no more heating?” 

Russian supply restrictions happened at the same time as the leaders of Germany, Italy, and France paid a visit to Kyiv to show their support for the country’s administration after nearly four months of fighting.

With concerns mounting that Russia could respond to EU sanctions by cutting off the gas supply to Europe, EU leaders have accused Russia of effectively weaponizing its position as one of the greatest oil and gas producers in the world.

As a result of their refusal to adhere to a new rouble payment scheme imposed by Russian President Vladimir Putin, Gazprom has already stopped supplying gas to Poland, Bulgaria, Finland, the Netherlands, and Denmark.

Italy, Austria and Slovakia are also reporting more supply reductions. In an article by Reuters, we read that according to Eni, the same Gazprom has reduced gas flows to Italy by 15%.  How will this affect Malta? It is not a coincidence that yesterday, we read the news that price of petrol and diesel in Malta will be going up. What we should be asking is not whether the price of petrol and diesel will go up – because this is certain but whether Malta will have to go through electricity shortages to make good for the high increase in the price of fuel.

---