Charlot Zahra
The price of liquid petroleum gas (LPG) will be going up by an average of 35% as from today in view of the rising expenses of production of gas for Enemalta Corporation, the state company that produces fuels.
The last time the price of gas increased steeply was under Alfred Sant’s Labour administration in 1997, to the criticism of the Nationalist Party then in Opposition.
In a statement issued yesterday afternoon, on a public holiday, Enemalta claimed this hefty increase was needed to cover the rising expenses “do not recover the full cost of the product” and the difference was being covered by a monthly Government subsidy which is to be €150,000.
It contended that the Corporation had subsidised the consumption of gas cylinders for the last two months – February and March – by “up to €800,000”.
Enemalta Corporation said that the increase had been approved by the Malta Resources Authority (MRA), the regulator for utilities.
Enemalta said that the price hike increase to the regulator was requested “in view of the fact that the retail price at which LPG was being sold did not even recoup the direct costs of the product”.
In submitting its proposal to the MRA, Enemalta said it had based its workings “on the price of LPG forwards, Enemalta’s cost base for its Gas Division and the expected sales of LPG & Propane” for this year.
“In its calculations, Enemalta estimated that the various LPG gas cylinders would have to increase on average by €0.40 per kilo (including 18 per cent VAT),” the corporation said in its statement.
However, “on direction of Government”, Enemalta said it was “not passing on the full increase to consumers” but the retail price was being increased by €0.167 per kilo (including 18% VAT) instead.
The remaining shortfall would continue to be subsidized directly by Government to the tune of €150,000, Enemalta explained.
Meanwhile, Enemalta also announced an increase in the prices of fuels for April as from today, with the price of Unleaded petrol and LRP increasing by €0.02 to €0.99 and €1.06 respectively.
The price of diesel also increased by €0.01 to €0.95, while the prices of kerosene and gasoil did not change.
The price of Thin Fuel Oil 200 increased by €3 to €352.00, while that of Thin Fuel Oil 450 and 900 increased by €4 and €6 respectively to €339.00 and €319.00.
PL reaction
Labour yesterday accused the government of being cut off from the economic and social reality of the country, adding that governments in other parts of the world were aiding families and industries by reducing energy prices.
“The way government has increased the price of fuel and gas is nothing less than social and economic irresponsibility,” the party said in a statement.
Labour said that in the last budget, it had asked the government to negotiate a clear pricing policy on the price of gas before privatizing Enemalta’s gas division.
Labour said government had not explained consumers the reasons behind the fuel increase despite the international price of oil had not changed. “Lawrence Gonzi is once again showing his insensitivity and lack of realism, in the process imperiling families’ quality of life. These increases, coupled with those of utilities, are putting hundreds of jobs in danger.”
Any comments?
If you wish your comments to be published in our Letters pages please click button below. Please write a contact number and a postal address where you may be contacted.
Download front page in pdf file format
All the interviews from Reporter on MaltaToday's YouTube channel.
Artists, art critics and friends unanimously gather to remember the impact and value of Ebba von Fersen Balzan’s work and her strong connection with the Maltese islands
