Unions criticise gas price rise

Unions have come out strongly against the government's decision to raise the price of gas cylinders by 37 per cent, describing it as insensitive to families' needs.

The price of gas cylinders has gone up by €2 after the government reduced the subsidy it gives to Enemalta.

The government's timing was wrong, especially in the present international crisis, and would leave a negative impact on families' quality of life, Union Ħaddiema Magħqudin general secretary Gejtu Vella said.

The price change should have been carried out in a more sensitive way not to increase families' financial burdens.

General Workers' Union general secretary Tony Zarb also felt the increase in the price of gas was insensitive, especially after the government introduced the utility tariffs. Its decision clearly proved the government's insensitivity, especially towards pensioners and workers, he said.

Similarly, the Forum of Trade Unions, which is made up of 11 unions, said the price increase was an unexpected burden for workers who already had to deal with the senseless increase in fuel prices.

The price hike could not have come at a worse time as it would push up the cost of living. The government made another mistake in removing a subsidy which was allowed by the EU, the forum said.

It appealed to the government to turn to social dialogue and listen carefully to what the social partners had to say.

In its announcement this week, Enemalta said it had based its workings on the forward price of liquid petroleum gas (LPG), its cost base for its gas division and the expected sales for 2009. The price of gas cylinders had remained the same since 2004 when an upward adjustment was made to cater for the higher VAT rate introduced at the time.

Enemalta also announced higher prices for its fuel products with unleaded petrol going up by 2c per litre and diesel notching a 1c per litre increase.