Malta saved $55 million through hedging – Austin Gatt
TRANSPORT, Infrastructure and Telecommunications Minister Austin Gatt yesterday denied reports that the Enemalta Corporation had bought oil at US$120 a barrel on the basis of a hedging agreement, accusing the Labour Party media of orchestrating a disingenuous campaign.
“The Labour media are intentionally distorting facts in their reports, in order to mislead the public over the international price of oil and the utility bills paid by Maltese consumers,” the Ministry said in a press statement. “Although the price of oil has decreased to around US$100, this is still higher than the price for which Enemalta buys its oil for electricity production.”
According to the Ministry, the administration’s prudence and foresight had saved Enemalta US$55 million by means of a hedging agreement, and for this reason the government was able to subsidise utilities so that the surcharge dropped from 160% to 95%.
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