Hedging helping Malta absorb oil prices spike

Public Investments Minister Austin Gatt said yesterday that hedging of oil purchases meant that purchases by Enemalta were currently being made at between $80-$84 per barrel (when the international price of a barrel of crude is close to $100). Dr Gatt...

Public Investments Minister Austin Gatt said yesterday that hedging of oil purchases meant that purchases by Enemalta were currently being made at between $80-$84 per barrel (when the international price of a barrel of crude is close to $100).

Dr Gatt said these arrangements would remain in force until at least the end of the year and the corporation had a 50 per cent arrangement going forward to the new year.

This was enabling Malta to absorb the impact of the current spike in oil prices, but one did not know what the future held, he said.

The minister was replying to a question by Labour MP Joe Mizzi over why the power surcharge had not risen despite the increase in the price of oil.

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