Gas company explains recent price increase

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.