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NEWS | Wednesday, 05 August 2009

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Labour, GWU and GRTU rail against gas price increase

The Chamber of SMEs (GRTU) yesterday joined the General Workers Union and the Labour Party in a chorus of disapproval against the hike in gas prices.
Gas cylinders’ prices were increased by an average of 40% on domestic sizes and by 26% on commercial 25kg cylinders. Enemalta said the subsidy on LPG products had been gradually removed over the last year, a move “required in anticipation of the opening of the internal market where more than one operator is expected to operate and consequently the removal of subsidies was also necessary in order to ensure fair competition.”
The GRTU said that for the second time in six months, the Malta Resources Authority had neglected its obligation to defend producers and consumers, by approving the price increase.
Producers who had shifted to the use of gas from electricity said they could not afford to hike up the price of their own products, while consumers would have to reduce their spending in order to afford the new price increase.
“Yet again, it’s a price increase at a bad time. The price of gas has increased by 90% since April – once again it’s a privatisation exercise that is only giving an advantage to the government rather than end-users,” the GRTU said.
The GWU said it could not understand how the government could say it had not control on the cost of living. “It says it is externally caused when at the same time, government’s decisions are increasing the rate of inflation.”
Labour MP Silvio Parnis accused the government of being cut off from the country’s social and economic reality.
“At a time when consumers are facing a record cost of living and seeing their quality of life going down, the government has decided to increase gas prices. It’s nothing but a confirmation of the government’s insensitivity.”

 


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