Gas company explains recent price increase
* Prices do not include home delivery. This table is supplied by Liquigas
Liquigas was able to go ahead with its €20 million project to build six storage tanks only because the government stopped subsidising the price of gas, the company said.
"Without the removal of subsidies, this investment could not have won bank finance or private funding," Liquigas said yesterday.
The new price of gas, which increased by almost a third, reflected market prices and would move in line with international prices, the company said. Even though the price increased "substantially" over the past year, Malta still compared favourably with other EU prices, it insisted.
With the removal of the subsidies, lifted last week, Liquigas Malta was allowed to adjust its prices if the product cost increased or decreased by two per cent over the previous month. This will allow its sister company, Gasco, to "move forward" and build its €20 million gas plant, including six storage tanks, in a disused quarry in Bengħajsa.
Also, liberalising the market would allow LPG to be used for air conditioning units, car fuel and to store in bulk for network piping, the company said.
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Mr Joe Cardona
Jun 2nd 2011, 19:56
Vera jiddispjacini meta nisma lil min ghandu mohhu maghluq. Kuntenti ghax qed joghlew il-prezzijiet. mela dawn kemm qed idahhlu fil-but paga. Zgur mhux aktar mill-Ministri u Segretarji parlamentari, ghax zgur li ma hadux 500 ewro fil-gimgha zieda.
Komplu hekk u Gonzi PN ikompli isawwatna ghax kuntenti. Boloh.
Jiddispjacini minn qalbi ghal dawk li bhali qed ibatu l-konsegwenzi ta' haddiehor u ma semghax mill-verita u issa gejna ghall-fatti. Swat biss.
C. Farrugia
Jul 11th 2010, 10:29
What the wages are in other countries is not the point. The point is that the gas has a international established price, same as oil and other comodities. When gas is bought wholesale this is not tied to what people in the country of consumption earn. This is the same as cars and all other comodities. A price of a car is fixed by the manufacturer and not according to the standard of living of each particular country.
David Treble
Jul 10th 2010, 17:49
I am sorry Mr Bonelo I must correct you on your comment. Many rural areas of the UK do not have access to mains gas supply so if residence wish to cook by gas they must relie on Bottled LPG. When I lived in a small market town in North Yorkshire the toiwn was connected to mains gas but properties in the surrounding area were not..Plus normally a delivery charge was added to the cylinder price.
N. Bonello
Jul 11th 2010, 18:37
Yes, I have no doubt the some people do use LPG and have visited towns/areas where Gas is not piped. But usually in these areas the majority opt to use electricity instead.
The point I was trying to make is that in say UK you might have less than 1% of households who use gas actually using LPG when in Malta you have 100%. In UK using LPG is unusual in Malta it is the norm.
Usually in these areas LPG is bought and picked up from petrol stations, no delivery is given.
Economies of scale or don't they exist when it suits us.
As I see it the table is comparing apples and oranges.
john mahoney
Jul 10th 2010, 15:50
Minn gabar din l-informazzjoni imissu gabar ukoll kemm hi il paga minima u l-penzjoni tal- pajjizi. U halluna nghixu. Tkomplux tittrattawna ta' boloh
Mark fenech
Jul 10th 2010, 15:32
Wasn't aware that the price includes delivery to home. Why is the gas sold at the various standing points the same price as the one delivered then?
C.camilleri
Jul 10th 2010, 15:30
Is Europe made up of only 5 countries?
J.F. Vassallo Ebejer
Jul 10th 2010, 15:24
This is what happens when privatization is tackled in the strange ways it is done in Malta.
So we have gone from a public to a private monopoly, but to add insult to injury, we have a private monopoly which is already treating us as “terroni”.
Don’t they realise that with their actions (especially the stupid way of using the prices in other countries to try and fool us), they have already cost them the goodwill of most of the Maltese population??
Are they that insensitive or do they just don’t care?
leo attard
Jul 10th 2010, 13:09
@E gahn.....govt stopped subsidizing gas because lately the food they are eating is of a higher quality than that of us lesser mortals, the result being the govt is producing less methane emissions than before
N. Bonello
Jul 10th 2010, 12:52
I ask - Who actually uses LPG bottled gas for normal home use in the countries listed ? I would say none.
So why try to compare the cost of an item rarely used eg. for camping purposes in the countries listed to gas as used for normal everyday household/domestic use.
Are you trying to fool us or was it a genuine mistake ?
J Farrugia
Jul 10th 2010, 12:49
Flimsy and stupid excuses for price hikes. Building the gas plant from our own pockets. Disgraceful. Ara taghhmluhx 100euros cilindru tal-gass!
Mario Tabone-Vassallo
Jul 10th 2010, 12:32
Kemm minn dawn il-pajjizi msemmija ghandhom gass jasal id-dar bil-pajp u kemm ihallsu ghalih fil-kaz li ghandhom?
Eric Gahn
Jul 10th 2010, 11:48
So the Govt stops subsidising gas and this company invests so that its shareholders can make more money. The Govt's focus is really on the well being of its citizens - those few who can afford.
Joseph Cauchi
Jul 10th 2010, 11:16
It is good to have these comparative analyses but could we also have comparative analysis of wages earned?
JC.