S.L. 545.9 Art. 9Specific stocks.

(1) The Minister, after consultation with the Regulator, may direct that a minimum level of oil stocks shall be maintained, and calculated in terms of number of days of consumption, in accordance with the conditions set out in this regulation. Specific stocks shall be owned by the Government or the CSE set up by it and shall be maintained either on the territory of Malta, and, or other Member States, as the case may be.

(2) Specific stocks can only be composed of one or more of the following product categories, as defined in Chapter 3.4 of Annex A to Regulation (EC) No 1099/2008:

(a) ethane;

(b) liquefied petroleum gas;

(c) motor gasoline;

(d) aviation gasoline;

(e) gasoline-type jet fuel (naphtha-type jet fuel or JP4);

(f) kerosene-type jet fuel;

(g) other kerosene;

(h) gas/diesel oil (distillate fuel oil);

(i) fuel oil (high sulphur content and low sulphur content);

(j) white spirit and SBP;

(k) lubricants;

(l) bitumen;

(m) paraffin waxes;

(n) petroleum coke.

(3) Petroleum products constituting specific stocks shall be identified by the Minister on the basis of the categories listed in sub-regulation (2). The Minister shall ensure that, for the reference year determined in accordance with the rules set out in regulation 3 and concerning the products included in the categories used, the crude oil equivalent of quantities consumed in Malta is at least equal to 75% of inland consumption calculated using the method set out in the Second Schedule.

(4) For each of the categories chosen by the Minister, the specific stocks undertaken to be maintained by the CSE shall correspond to a given number of days of average daily consumption measured on the basis of their crude oil equivalent during the reference year determined in accordance with the rules set out in regulation 3. The crude oil equivalents referred to in the sub-regulations (1) and (2) shall be calculated by multiplying by a factor of 1.2 the sum of the aggregate ‘observed gross inland deliveries’, as defined in Section 3.2.2.11 of Annex C to Regulation

(EC) No 1099/2008, for the products included in the categories used or concerned. International marine bunkers shall not be included in the calculation.

(5) When the Minister has decided that specific stocks shall be held by Malta, the Government shall send to the Commission a notice to be published in the Official Journal of the European Union, specifying the level of such stocks which the Minister has undertaken to maintain and the duration of such undertaking which shall be at least of one year. The notified minimum level shall apply equally to all categories of specific stocks used by Malta.

(6) Such stocks shall be held for the full length of the notified period without prejudice to the right of the Minister to authorise temporary reductions to be undergone due solely to individual stock replacement operations. The list of categories used by Malta shall remain in effect for at least one year and may be amended only with effect on the first day of a calendar month.

(7) In the case that the Government has not made a commitment for the full length of a given calendar year to maintain at least thirty days of specific stocks, at least one-third of the stockholding obligation shall be held in the form of products composed in accordance with sub-regulations (2) and (3).

(8) When less than thirty days of specific stocks are held, the CSE shall draw up an annual report analysing the measures taken to ensure and verify the availability and physical accessibility of its emergency stocks as referred to in regulation 5. The CSE shall document in the same report arrangements made to allow the Government to control the use of these stocks in case of oil supply disruptions. Such report shall be sent to the Minister and to the Regulator fifteen days prior to the end of the first month of the calendar year to which it relates.