Operators losing €30 to €45 per week because of increased fuel costs - GRTU

Increased prices of diesel fuel and fuel oils continue to place increasing pressure on the business community, the Chamber of Small and Medium Enterprises (GRTU) said.

The price of diesel has increased by 15c per litre since January and it appeared that the government was not realising the tremendous pressure this increase was causing transporters and distributors and all fixed equipment operators depending on fuels to operate their equipment.

“GRTU has been striving for direct support to small enterprise owners and self employed in these sectors, especially those related to the food chain, waste carriage and construction as these operators find it extremely hard to pass on extra costs to their clients as very few of these operators have a fuel price escalation clause in their contract with Local Councils, developers and other trade users of their services.

“Most buyers of their services, including government and public service authorities, find it hard to accept to change contracts with the result that operators will have to suffer increases of fuel prices themselves.

“Where the cost is passed on the impact on the general level of prices suffered by consumers is relatively very hard. GRTU finds it very difficult to comprehend why during a stage of economic development when most small operators are still suffering from a depressed market, the Minister of Finance, who is also responsible for the Economy and for Small Businesses, inflicts such an additional burden on the distribution and transport sector,” director general Vince Farrugia said.

He said that it was illogical to increase the excise duty on fuels at this particular time and the government could not blame this excise duty increase on the EU as happened when it was last increased.

“The combination of excise duty increase and the steady staggering increase in fuel prices is being felt in all sectors.

“GRTU is not satisfied that Government and the public regulator are doing enough to make sure that purchasing procedures by the suppliers are acceptable and convincing.

“The Malta Resources Authority should make sure that the price increases being put in place are only effective after making sure that procedures have been adhered to for the interest of the consumer and end user of this important fuel.”

Mr Farrugia said:

“For many operators who use heavy transport this week’s fuel increases represent loses of between 30 to 45 euros per week,” Mr Farrugia said.