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Gas company explains recent price increase

* Prices do not include home delivery. This table is supplied by Liquigas

* 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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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.

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