Price for unleaded fuel will drop by 6c from Tuesday, while diesel will be 2c cheaper after the Government struck a deal with international banks Barclays and Deutsche Bank.
The prices – €1.43 per litre for unleaded and €1.36 for diesel – will be locked for three months.
The exchange rate was also fixed locally with HSBC Bank and Bank of Valletta to ensure a stable price till the end of the year. The quality of the fuel will be maintained.
The hedging pilot project was announced by Energy Minister Konrad Mizzi who said the Government was committed to provide stability for families and businesses.
The rate for unleaded petrol is the lowest it has been for the past 19 months, while that of diesel is the cheapest in 12 months.
“This agreement was struck because we appreciate that this will allow families to plan better, while at the same time provide Enemalta with stability,” Dr Mizzi said.
Stability was a key word that kept being repeated at the press conference addressed by Dr Mizzi and Enemalta chairman Charles Mangion; a message that will give motorists a three-month breather.
The agreement was struck for just three months after numerous analysis and discussions in the light of the erratic fuel prices on the international market.
Fuel prices fluctuate for various reasons from unfavourable exchange rates to international political stability leaving motorists in suspense, wondering whether filling up their car was going to come at a higher price every month.
“Throughout these three months we will be assessing the situation with stakeholders to make an informed decision on the way forward,” Dr Mizzi said.
In the coming week, the Government hopes to reach a similar agreement to achieve better rates for LNG and electricity.
Asked about Enemalta’s previous fuel procurement procedures – coming under the spotlight during Parliament’s Public Account Committee meetings following the Auditor General’s scathing attack – Dr Mangion said the corporation was conducting internal and external analysis and working to improve and update the system.