Power surcharge up to 67.5 per cent

The electricity surcharge between today and April 30 will increase to 67.5 per cent, the government said yesterday.

The prices of unleaded petrol and lead replacement petrol (LRP), will go down from 47c6 to 45c5 per litre and 50c6 to 48c5 per litre respectively. The price of diesel will go down by 0c4 from 41c9 per litre and the price of light heating oil and kerosene will remain the same at 23c9 and 41c5.

The electricity surcharge, up from 47.4 per cent, will be raised to make up for the increasing cost of fuel oil used by Enemalta to generate electricity. The government said fuel oil prices were affected by international instability and the increased demand for fuel oil after Russia reduced its gas supply to Europe.

"According to present prices, and based on electricity consumption in January and February, electricity production will cost Lm84.2 million. Through the surcharge, Enemalta will recuperate Lm 44.6 million," the government said, adding that the surcharge would have stood at 92 per cent had the government not absorbed part of the expense.

Hotels and factories pay a maximum surcharge of Lm21,000.

A surcharge of 55 per cent had been unveiled last October to cushion the impact of spiralling oil prices, with an additional 1.2 per cent to be levied monthly as from January.

On the revision of petrol and diesel prices, the government said these depended on the price with which Enemalta would have bought the last shipment of such products.

Enemalta had managed to buy the fuels at a more competitive price this time due to a favourable exchange rate between the dollar and the sterling, the government said. Oil prices reached $60 a barrel last Friday, an increase of almost eight per cent so far this year. Figures released by Eurostat showed that electricity prices increased in nearly all EU member states between July 2004 and July 2005.

The General Workers' Union said it had asked Prime Minister Lawrence Gonzi for an urgent meeting given the new increases.

In a third letter sent to Dr Gonzi since January, the GWU said the surcharge was placing more hardships on workers and pensioners, calling for discussions so that a remedy to the problem may be found.

Labour MP Marie-Louise Coleiro said the government should conduct an assessment of the social impact the surcharge is having.