State aid scheme for fishery companies facing higher fuel prices due to Middle East conflict approved

A €700,000 Maltese state aid scheme aimed at supporting companies active in the primary production of fishery products that are facing increased fuel prices due to the Middle East conflict has been approved by the European Commission.

The scheme was approved under the The Middle East Crisis Temporary State Aid Framework, otherwise known as METSAF, which had been adopted at the end of April. METSAF’s goal is to support the EU economy in the context of the crisis that is ongoing in the Middle East, and it allows EU member stated to provide aid to companies in three sectors – agriculture, fisheries and transport.

War broke out between the USA, Israel and Iran at the end of February this year. The war largely closed the Strait of Hormuz, a waterway which prior to the conflict was involved in shipping around 20 per cent of global oil supplies, and this has been affecting global prices. Attempts to reopen the Strait have thus far been short-lived

The Maltese state aid scheme will be implemented through direct grants that are based on the volume of fuel purchased between 1st March of 2026, and 31st December of this year and the monthly price difference with the pre-crisis benchmark of February 2026, the European Commission said.

The Commission explained that the aid covers 70 per cent of additional costs, and it will run until 31st December.

The scheme was assessed under state aid rules, and the Commission found it to be in line with the METSAF conditions.

The Commission concluded that the scheme is necessary, appropriate and proportionate to facilitate the development of an economic activity and that it "does not adversely affect trading conditions to an extent contrary to the common interest."