Steep increase in gas prices

A steep increase in LPG gas prices was announced this evening by the Infrastructure Ministry. It said the review followed the government's decision to remove the last tranche of subsidies on these products. "The subsidy on LPG products has been...

A steep increase in LPG gas prices was announced this evening by the Infrastructure Ministry.

It said the review followed the government's decision to remove the last tranche of subsidies on these products.

"The subsidy on LPG products has been gradually removed over the last year, a move that is required in anticipation of the opening of the internal market where more than one operator is expected to operate and consequently the removal of subsidies was also necessary in order to ensue fair competition," the ministry said.

Subsidies to LPG products in the last four months cost the government €600,000.

Prices will be reviewed as follows:

Cylinder Size (kg)

Current price (€)

(incl of VAT)

Approved price by MRA (€)

(incl of VAT)

LPG

10

6.4

9

12

7.4

10.5

15

9.25

13

25

16.2

20.5

Bulk per kg

0.63

0.82

Propane

10

7.8

10

15

11.72

14.5

25

19.45

23

Bulk per kg

0.79

0.92

The prices of unleaded petrol, LRP and diesel are all going down 1c to reflect the price of the latest shipment of fuel. (See separate story)

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