Subsidy keeps surcharge in check

The fuel surcharge for August and September will be 50 per cent after the government decided to subsidise it by 25 per cent.

On the basis of fuel prices, the surcharge should have amounted to 75 per cent, the government said yesterday. The surcharge stood at 45 per cent over the past four months. In June and July it should have risen to 65 per cent but Enemalta absorbed the difference by reducing its expenses.

Fuel oil prices reached the highest levels over the last four years, increasing from $311 to $411 per ton, the government said. The government opted to subsidise the surcharge as it felt a 75 per cent surcharge would be a big burden on the economy.

The government also said that the price of diesel will increase by 0.6c per litre as from today. Diesel will now be sold at 42c5 per litre.

The price of kerosene will increase by 0.7c a litre, to sell at 42c4 per litre. The price of thin fuel oil 200 went up by Lm6 per ton, that of thin fuel oil 450 rose by Lm6.50 and that of thin fuel oil 950 increased by Lm8.

The price of unleaded and lead replacement petrol remained unchanged at 46c3 and 49c3 per litre respectively.