Fuel surcharge to net Lm32m to the Exchequer

Based on existing fuel prices and electricity consumption in November and December, the fuel surcharge this year is estimated to net Lm32.11 million, the government said yesterday.

In the meantime, the government added some extra sparkle to New Year's celebrations by confirming the reduction in the water and electricity surcharge to 54 per cent, down from 59.5 per cent.

The latest surcharge, the lowest in a year, will cover January and February.

The prices for unleaded petrol, lead replacement petrol, diesel, kerosene and light heating oil will remain unchanged until February - that is 42c6, 45c6, 38c9, 39c and 24c per litre respectively.

The price of thin fuel also remains unchanged.

In November 2005, the government had announced it would be revising the fuel surcharge according to the price paid by Enemalta Corporation for fuel imports.

The price is hammered out in line with international oil prices and the exchange rate between the dollar and the lira.

Enemalta bases about 90 per cent of its output on fuel oil and 10 per cent on gas oil.

In October 2005, the government had introduced a transitory subsidy of 29 per cent cut from the surcharge to soften its impact. The subsidy is being reduced at the rate of 2.42 per cent every two months after taking into consideration the price paid by Enemalta when buying fuel.

Without the government subsidy, the surcharge would have reached 65.9 per cent.

Statistics released by Eurostat last summer showed that Malta had the second highest yearly increase in electricity prices in the EU, although the overall cost remains among the cheapest.

Fuel surcharge