Climate.
Fuel Subsidies: Our Governments’ Dirty Secret
Despite the urgent need to combat climate change, fuel subsidies equivalent to 7.1% global GDP have significant consequences.
On one of many sun-drenched days I found myself driving along the coast of the Grand Harbour. The historic bastions of Valletta cast their golden hues onto the blue waters of the Mediterranean Sea, creating a breath-taking view. As I admired the scenery, my gaze was drawn to a superyacht anchored nearby. While such a sight is not uncommon for our scenic harbour, what got my attention was the two refueler trucks parked alongside it.
I slowed down to catch a closer glimpse of the vessel. To my surprise, I noticed that the yacht was owned by the royal family of one of the Gulf states, where vast oil reserves seemed as abundant as the sands of the desert. Yet, here they were in Malta, getting their yacht refuelled. Fuel in Malta was being generously subsidized at the time after oil prices had surged in 2020. This made Malta an irresistible destination for super-yacht owners seeking cost-effective refuelling. Even the wealthiest of the wealthy couldn’t resist a good deal.
A few weeks later, the Maltese government, embarrassed by such stories, released an announcement…
