Updated: Fuel prices to come down substantially on Monday

(Adds Labour reaction)

Substantial fuel price cuts were announced by the Infrastructure Ministry this afternoon. The new prices come into force on Monday after Enemalta bought the latest consignments of petrol and diesel at market prices following the expiry of a swap negotiated in May.

The new prices per litre are:

Unleaded petrol: €0.99 (A reduction of €0.25)

Lead replacement petrol: €1.06 (-€0.25)

Diesel: €0.99 (-€0.24)

Kerosene: €1.00 (-€0.30)

Light heating oil: €0.77 (-€0.16)

Thin fuel oil – prices per ton:

Thin fuel oil 200 deg: €422 (-€76)

Thin fuel oil 450 deg: €403 (-€87)

Thin fuel oil 900 deg: €373 (-€107)

The prices include VAT, where applicable.

The ministry explained that the price reductions had come about after the last consignments of petrol and diesel were bought at market prices following the expiry of a swap which Enemalta had negotiated in May. That swap had enabled the corporation to keep prices stable for six months despite an unstable market . Between June and October, Malta had among the lowest prices in Europe, the ministry said.

The Labour Party in a reaction said it welcomed this belated decision and hoped that, by the same yardstick, the government would withdraw the new utility tariffs.

The party said it had been appealing for the price cuts since October, when oil prices started coming down.

Indeed, consumers would have benefited more had the government, in the last budget, not introduced a new tax on fuel. The new tax was introduced at the same time as other European governments were actually reducing tax on fuel, the party observed.