Anger at gas price rises

A hefty increase in the price of gas is likely to hit families and catering establishments hard as they also come to terms with an equally steep rise in petrol.

Coming hot on the heels of a 6c per litre increase in petrol and a 3c per litre hike in diesel, Liquigas, a major gas supplier, on Thursday announced higher prices for gas cylinders.

With a 12kg gas cylinder now selling at almost €20 it is vulnerable families that will shoulder the biggest burden, according to Leonid McKay, the lead author of the recent study, A Minimum Budget For A Decent Living, commissioned by Church organisation Caritas.

“Low income families or those living on social benefits are most likely to use gas for cooking and heating and will undoubtedly be hard hit by such an increase,” Mr McKay said.

Low income families or those living on social benefits are most likely to use gas for cooking and heating and will undoubtedly be hard hit by such an increase- Caritas researcher

An exercise undertaken by The Times shows how fuel prices experienced a sharp upward turn since the beginning of the year as international oil and gas markets responded to uncertainty over Iran’s nuclear threat and the dollar strengthened against the euro.

Families on a shoestring budget would feel the impact of a few cents on their bottom line, Mr McKay added, although the hefty increase coincided with the onset of warmer weather, meaning less gas would be used for heating.

He said it was positive that the government reacted immediately to the higher gas prices by increasing the energy benefit by €5 for elderly people and vulnerable families.

But although this would mitigate the higher cost, Mr McKay was quick to point out that most of these families lived in apartment blocks and this entailed a higher cost if the gasman delivered the cylinder to the door.

“The extra charge could even go up to almost €1 in some cases and I have met families, especially elderly people, who feel this is an added burden,” he said.

A table of charges published by Liquigas shows that the extra charge for transportation of gas cylinders to flats could go up to 83c for somebody living on the fifth floor or higher.

The Ursuline Sisters do not have to contend with extra delivery charges but according to Sr Roberta Spiteri, the Mother Superior at the order’s Sliema home that also houses children, the price hike will hit them hard.

The main kitchen catering for 33 nuns has an industrial burner that works with kerosene, the price of which also increased by 3c per litre this week and now retails at €1.39 a litre.

“Gas is not used all the time in the main kitchen but it is used in the kitchenette where the children’s food is prepared,” Sr Spiteri said, adding the order did not benefit from energy subsidies.

For the past two years now we have witnessed this constant increase in the price of gas that I am now simply resigned to the matter. It has almost become a running joke- Restaurant owner

However, it is not just social cases that will experience the negative impact on their pockets. Catering establishments have to contend with higher costs and diminishing profits as they stave off passing on the burden to consumers.

Antoine Tanti, a director of Champ Ltd that owns a chain of pastizzerija outlets, said his company suffered a double whammy this week with higher diesel and gas prices.

His company has a number of delivery vans that run on diesel but, more importantly, gas consumption for cooking is a major cost element in production.

“Our costs keep increasing and the intense competition out there means you cannot just raise the price of your product,” he said, adding the price increases would have a negative impact.

Mr Tanti said his Paceville outlet alone used 12 large cylinders a week. “With the price increasing by more than €2 on each cylinder, our costs will just spiral,” he said.

His observations are shared by David Darmanin, the chef and owner of Taverna Sugu in Vittoriosa.

“For the past two years now we have witnessed this constant increase in the price of gas that I am now simply resigned to the matter. It has almost become a running joke,” Mr Darmanin said. With people having less cash to spend as a result of the economic situation, he added, it was hard for some restaurateurs to pass on the costs to consumers.