The Infrastructure Ministry said this afternoon that oil prices today are still higher than the price with which Enemalta bought its supplies for this year under hedging agreements.
The international oil price slid over the past few days to around $100 a barrel.
The ministry denied reports that Enemalta had bought oil at $120 per barrel and said that governemnt prudence had led to Enemalta saving $55 million through its hedging agreement. The agreement also covers half of next year's supply.
The ministry said that it was only through such arrangements that the governemnt could afford to subsidise electricity, and the surcharge was 95% rather than 160% had oil been bought at market prices.