A decision about whether compensation should be given to make up for fuel increases has been postponed until the end of March, pending the conclusion of a report on inflation.
Finance Minister Tonio Fenech said the report, promised by government in the budget, will analyse inflation between January and March and also project price movements for the rest of the year.
“It is not a foregone conclusion that the report will suggest compensation,” the minister said.
Speaking at a press conference following a three-hour meeting of the Malta Council for Economic and Social Development, Mr Fenech said the report will assess whether the price increases are acceptable and, if not, whether there was need for compensation and to whom.
He said there was consensus that if compensation was necessary this would be given to the weakest sectors of society.
Any such decision, he said, had to be taken within the constraints of government’s deficit target and maintaining the country’s competitiveness.
The MCESD agreed to start discussing the revision of the Cost of Living Adjustment mechanism.
Mr Fenech said that fuel prices in Malta were still among the cheapest in Europe, despite the recent increases. The increases were also lower than those in other EU countries.
When asked about the €600 per week increase given to ministers, Mr Fenech confirmed that the issue had been raised in the MCESD.
However, he defended the decision taken three years ago to also pay ministers their MP’s honoraria since they could not retain their private practice or job.
Asked about next week’s protest, organised by the Labour Party, Mr Fenech said he would have attended the protest had it been held outside the offices of OPEC.
OPEC is the international organisation of major oil producing countries. It has a major influence in the way the international price of oil is determined.
“It is unfair to protest against the government when the increases are coming from abroad. It is irresponsible and I expect them to come up with solutions on who should pay for what they are asking,” he said, adding he understood the people’s concerns.