The price of LPG gas will rise by up to a third from today as Liquigas Malta is given a free hand to adjust its prices every month.

In a statement, the Malta Resources Authority said the hike reflected the removal of subsidies and an increase in the international prices of gas. Due to this fluctuation, Liquigas Malta has been allowed to adjust its prices if the product cost increases or decreases by two per cent over the previous month.

The authority said that as it was there to protect consumers, it only approved the prices worked out on its own formula rather than those requested by the company. The revenue from the sale of gas is calculated to cover the cost of importing, storing, bottling and supplying the gas.

It is estimated that the new price will result in an annual average increase in expenditure of €28 per household. However, this does not cover those households making heavy use of gas as an alternative to electricity through the use of gas water heaters, for instance.

The MRA said it would ensure gas distributors do not charge consumers more than the approved prices, adding that they should have the full price list affixed to their vehicle.

Meanwhile, as a result of the new gas prices, the government has announced an increase in the “energy benefit” granted to 28,000 low income families.

Around 13,000 families, where at least one person is elderly, will receive an extra €25. The rest will get €15 more than they are currently receiving.