The GRTU said today it had had a meeting with the Prime Minister during which Dr Gonzi explained in detail why the government had to raise the power surcharge and why, in current circumstances it could not neither reverse its decision on the surcharge nor reduce duties on diesel.

The GRTU delegation, led by president Paul Abela and director-general Vince Farrugia, expressed its concerns about the power and fuel costs and reiterated its call for the government to reduce duty on diesel which, it said, was yielding revenue of €90m annually. The delegation warned that such increases would fuel inflation.

Dr Gonzi said the government would consider the situation of any sector which could not cope with the current circumstances, but he said Malta could not respond to a situation caused by factors abroad by taking measures which would cause it financial problems in the future.

He said the current system of capping on the power surcharge could not be changed because it would lead to job losses.

The GRTU said it would be holding meetings with its various sections on the impact of the energy prices so that the best solutions could be discussed with the government.