An average restaurant could see its annual gas bill increase by over €1,500 after the recent price hike, which saw the price of bulk gas increase by 76 per cent since the beginning of the year.
A restaurant in Sliema that consumes around 80 kg of liquified petroleum gas (LPG) per week used to pay around €37 at the beginning of the year.
The latest price hike, which follows another increase in April, means that the weekly gas bill will shoot up to €66.
The price hikes are cause for concern for the chief executive of the Malta Hotels and Restaurants Association, George Schembri. He explained that energy was a major cost factor for the sector.
"We told the government not to increase costs on hotels and restaurants but yet again we have seen the price of gas going up. It will hit hotels and restaurants in a negative way," Mr Schembri said.
Although occupancy levels in hotels for August were generally on par with last year, the sector had to contend with lower room rates, he added, insisting that any small increase in costs did not help.
Mr Schembri's sentiments were shared by Labour Party tourism spokesman Marie Louise Coleiro Preca. She disgareed with the recent gas price hike, insisting it would have a negative impact on the already beleaguered tourism sector.
The government last week removed all the subsidy on gas after having removed part of it in April. The subsidy between April and July amounted to €600,000.
Bulk gas now costs €0.82 per kg.
In March it cost €0.466 per kg.
Under the new price regime the 12-kg gas cylinder, normally used in households, now costs €10.50, a 94 per cent price hike over what it cost in March.
From €1,900 to €3,400 in just a year
A restaurant that consumes around 80 kilogrammes of LPG gas per week was until March paying €37 per week.
The price went up to €50 per week between April and July. The latest price hike for bulk gas means that the restaurant would now pay €66 per week.
The total annual bill for this restaurant would have shot up from €1,924 at the beginning of the year to €3,432 by its end.
ksansone@timesofmalta.com