Bakers plan to import their own fuel to minimise costs, as they brace themselves to survive without government subsidies as from today.

The move is the latest drive to cut costs and fend off increasing competition from imported bread. The Bakers' Cooperative estimates that sales by members dropped by between 10 and 15 per cent since the price of bread was last increased in May.

Following the steep increase in the international prices of oil and wheat, the price of bread had gone by up seven euro cents to 54c for the large Maltese loaf and by four euro cents to 34c for the small loaf.

Consumers have clearly started turning to foreign products and the Maltese bakers have no option but to reduce their prices even as subsidies are removed.

Cooperative president Raymond Briffa says bakers are reluctant to raise prices again but, given the prevailing scenario, they are left with little option unless they find alternatives.

He acknowledges that the price of fuel decreased but notes that the drop was not enough because their costs to produce traditional Maltese bread were still astronomical. The bakers want to see the cost of raw materials they use to go down. At the current rate, in fact, Mr Briffa estimates that bakers would need to increase prices by 3c5 across the board to cope.

Soon, the cooperative will be meeting the Finance Minister to review the situation and see how bakers fare without the subsidies. But it is clear that a lot of hope is pegged on their idea to import their own fuel. Mr Briffa says he hopes that they would not be faced with a bureaucratic conundrum when they apply to be granted a licence.

Asked about the drop in sales, Mr Briffa complained that imported bread is of inferior quality and, though more expensive, was still proving to be more popular than the traditional Maltese bread. He explains that while the wheat used by Maltese bakers is of the best quality and high in protein that used in imported bread is not, even though the cost of the latter is much higher. Unfortunately, he adds, consumers seem to prefer paying €0.70 for a baguette from the supermarket when they can get a better quality product from bakers for much less.