Liquigas Malta announced an increase in gas prices this afternoon - just hours after an increase in fuel prices was announced by Enemalta.

Liquigas said the new prices come into effect tomorrow.

The revision is as follows:

The company explained that the average increase in the LPG’s final price of 9.8% is due to the price upsurge of the raw material, in particular for butane which is the main component in the mix product used in Malta, which rose by 16% on the international market during the month of November.

The company explained that a variety of factors had generated a cumulative effect on LPG prices throughout the international markets. Major factors were:

supply problems - difficulties at a number of refineries led to supply issues. There were problems in France following periods of industrial unrest; in Algeria, a major source of butane supply, where there was a shortage of butane; and in Italy, where refineries were faced with a number of unexpected operational interruptions;

seasonal factors – the international market also experienced the habitual seasonal price pressure due to the approach of winter, as well as resulting higher than average market trading activity across the Western Mediterranean Region;

exchange rate factors - LPG price was also affected by an unfavourable Euro versus Dollar exchange rate, brought about by the on-going international financial crisis, and in particular in Greece, Ireland and Portugal.

See separate story on fuel price rises at

http://www.timesofmalta.com/articles/view/20101130/local/fuel-prices-go-up