Labour leader Joseph Muscat yesterday challenged the government to reveal how it was buying Malta's oil supplies.

Dr Muscat said that even former Nationalist MEP candidate Vince Farrugia had said he harboured serious doubts about the transparency of the process used to buy Malta's oil.

"When I put a parliamentary question asking from where and how we were getting oil, all I got was the usual beating about the bush, but no answers were given," Dr Muscat told Miriam Dalli, who was interviewing the Labour leader.

Dr Muscat warned that the government's "incompetence and mediocrity" in buying oil, and the energy and water tariff hikes would mean that "families who through their own hard work were in the middle class, would be relegated by a class because they wouldn't be able to cope with the expense".

He said that as a result of the higher rates people were spending less, saying, "a family who on Saturdays used to go out and have a steak, now would be going out for pizza instead".

The Opposition Leader criticised the Gonzi administration for the increasing deficit, which he said was not due to a stimulus package or any direct investment in jobs, but due to the government's inefficiency.

"If this happened in a private company, the financial controller would have long been shown the door," Dr Muscat said, pointing out that, while the deficit was increasing, joblessness was on the up too.

The Nationalist Party reacted to this saying that the past months have shown increased private investment in Malta such as SR Tehnics, a testament to the government's success in keeping Malta afloat during troubled times.