The excise duty on cigarettes, fuel, alcoholic drinks and cement as well as tax on bunkering of fuel and car licences is expected to generate a €21.4 million increase in government revenue next year.

Despite this, Finance Minister Edward Scicluna yesterday said the price of petrol and diesel would remain stable.

Last September, the prices of the two fuels were locked as part of a three-month pilot project.

Prof. Scicluna said rigorous negotiations had led to the extension of fuel price freeze until next March.

This means that the price of diesel will remain at €1.36 per litre while petrol is only expected to increase one cent to €1.43 per litre.

The minister explained that while the price of diesel had already been fixed, discussions on the price of petrol were ongoing.

A rise in excise duty will see a rise in a pack of cigarette prices of 30 cents, to reach an average price of €5.

The Government is predicting a €50,000 drop in revenue from cigarette taxation next year despite the increase in excise duty, possibly down to a reduction in the number of smokers.

In anticipation of higher prices, the Customs Department recently imposed a limit on the distribution of cigarettes to retailers, creating a shortage in the market.

Revenue from excise duty on tobacco is expected to bring in an extra €373,000.

Stamp duty on spirits will increase by one cent for every unit of alcohol. This will mean that a bottle of whisky with an alcohol count of 40 per cent will be taxed an extra 40 cents over and above the current rate. The rise is expected to rake in an extra €2.9 million.

Duty on beer on the other hand will only increase by a third of a cent for every half pint.

In 2008, the Government reduced excise duties on alcohol prior to the Budget to discourage people from going to Sicily to stock up. The measure was not implemented for the build up to this Budget.

Excise tax on cement will generate €6.6 million, some €2 million more than in the 2013 budget.