Budget 2014 introduces 2c excise duty on all petroleum products

The increase in excise duties on petroleum products will generate an increase of €54 million in government revenue, according to former finance minister Tonio Fenech.

The 2c increase on fuel tax duties will be applied to all petroleum products, including the heavy fuel oil used to fire the power station.

Referring to the 2012 and 2013 financial estimates, Fenech said this year the government generated €11 million less in excise duties on fuel when compared to 2012.

Estimates are that during 2014, the government will generate €266 million, an increase of €54 million from 2013.

"The tax burden is such that this year, when the country had an economic growth, the government earned €11 million less than projected. But next year, the government forecasts an increase of €54 million," he said.

Fenech argued that this increase would be mainly thanks to the 2c increase on HFO and all petroleum products purchased by Enemalta.

"So suddenly, Enemalta is in a position to pay hefty taxes. Why doesn't the minister say how much Enemalta will be paying the finance ministry in excise duties?" he said.

Fenech added that Enemalta was in a position to pay such amounts because it was making €1 million in savings every week. But "conveniently", he said, the government was keeping this fact hidden. He said, it was obvious why the financial estimates for 2012 had not yet been published.

"The reductions in utility tariffs is possible because the government will be generating an additional €54 million, the double of the savings promised to households."

Fenech also said that "Alice in Wonderland" was about a 10-year-fixed price agreement which had now turned into a five-year fixed price.