News | Wednesday, 01 April 2009

Gas, petrol prices rise today

Charlot Zahra

The price of liquid petroleum gas (LPG) will be going up by an average of 35 per cent as of today in view of the rising expenses of production of gas for Enemalta Corporation.
In a statement issued yesterday afternoon, Enemalta claimed that this hefty increase was needed to cover the rising expenses which “do not recover the full cost of the product”.
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.
The new gas prices feature in the table on the right hand side.
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 per cent VAT) instead.
The remaining shortfall would continue to be subsidised 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.



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01 April 2009

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