As government moves towards the establishment of a “liberalized fuel market” in fiscal 2021, the Employers’ Consultative Association cautions that the State ought to monitor the transition to avoid consumers being at the mercy of the private sector.

In a statement on Finance Minister Colm Imbert’s 2020/2021 fiscal package, the Association said it is in support of the move to end fuel subsidies after 46 years.

“While there is an inherent risk of increases in prices during periods of high energy prices, the opposite will also apply during periods of low energy prices. Additionally, this approach will bring much needed relief to Government expenditure via a removal of this subsidy and will allow dealers to set their own margins.” 

It says, however, that the process should, however be  closely monitored – especially in its early stages – “to reduce the risk of price gouging and ensure that this move is one that will redound the benefit of the consumer through competition.”

Yesterday, Minister Imbert said he does not expect the impact to be extreme.

“The net result should be little or no increase in the price of motor fuels at current oil prices,” he said, adding  however that if the price of oil recovers, the price of gasoline and diesel will “naturally increase proportionately”.