The price of bottled gas (LPG) in Malta was still the lowest in Europe despite the announced increases, the Infrastructure Ministry said.

The ministry said this fact defeated the Labour Party's argument that gas prices had risen in Malta while they were falling in Europe.

The ministry said LPG prices in Malta had not changed since 1997, except in 2004 when VAT was raised from 15 to 18 per cent.

The new prices were approved by the Malta Resources Authority in January but the government opted to retain its subsidy in full for a further two months, at a cost of €800,000, the ministry said.

The ministry also pointed out that the government would continue to subsidise the product at €150,000 a month.

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