Families paying more than double for gas - Labour MP

The Maltese Resources Authority (MRA) has authorized a €0.041 cents mark-up on liquid gas by Liquigas Malta after it carried out an evaluation of the proposed increase to establish the “lowest possible prices are charged with the highest quality of petroleum product".

Marlene Pullicino, Labour spokesperson for utilities, has said this increase would result in a greater burden for both families and businesses. “The minimum that government could have done was to increase energy benefits,” she said, referring to yesterday's announcement of increased benefits on energy bills. "This however was not enough," Pullicino said.

Government yesterday announced it had increased energy benefits for families with one person who is a pensioner, or pensioners who live alone, of €25. There are some 13,000 families who will receive this increase. A total of 28,000 will receive an increase of €15 in compensation for the increase in the price of gas. In total, the government is going to pay out a maximum of €745,000 to compensate for the increase. However, according to the MRA, the increase in gas prices means a cost of €4 million in a year for all families.

“This means that most of the middle class, self employed and pensioners are going to suffer,” Pullicino said. “Moreover one must keep in mind that businesses are receiving no compensation and that gas is an essential commodity for the economic pillar of tourism.  Hotels and restaurants will have to face this increase in the middle of the peak season when most of them already are tied by prices with tour operators.”

The General Workers Union (GWU) also expressed its concern saying that “around 60,000 persons in Malta are already in risk of poverty as the Eurobarometer confirmed a few days ago.”  The GWU said that as from today, the price of gas for domestic use and fuel increased by at least 31%. In the case of businesses, MRA estimates that their costs will increase by 30%. In other cases, this increase will put pressure on consumers’ prices.

Pullicino said that this gas price increase is a blow which has occurred after the “Government made the families pay an extra €30 million per year for water and electricity bills.”