The Labour Party, the Malta Employers' Association and trade unions slammed the latest fuel price hike today, with the MEA warning that the situation may soon become unsustainable for businesses.

This, it said, was another blow to businesses and competitiveness.

"Employers in general are being doubly hit by rising costs and claims for higher wages to compensate for the deteriorating purchasing power of employees. Certain sectors, like distribution, are also being affected by the delays caused by traffic inconveniences which have now become a daily occurrence"

While acknowledging that the prices may partially reflect global prices of oil, the association called on government to give a clear commitment to reduce operational costs at Enemalta, coupled with a more effective fuel purchasing strategy including investment to increase the storage capacity of the Corporation. It also called on Government to ensure the full liberalisation of this sector which would allow for increased competition.

Michael Farrugia, the PL spokesman for consumer affairs, said that the fuel price increases had come at a time when the people were also being badly served by the bus service.

This increase, he noted, had come about after the government announced compensation to a small number of low income families, while ignoring hundreds more. That compensation, he said, was even inadequate for those who were eligible to receive it.

Since the budget, he noted, fuel prices had risen by 35% and the latest increase reflected government insensitivity.

The FORUM trade unions group said this was another blow to low and middle-income families and put further upward pressure on the cost of living.

The GWU noted that the price of petrol had gone up by 20c per gallon. Such a steep increase, it said, would raise prices and undermine the purchasing power of the workers.

The increase showed, yet again, how the government was ignoring the plight of thousands of people

The union reiterated its disagreement with the level of compensation announced by the government on Friday and said that was a decision taken by the governemnt on its own.