Price of gas up for second time in five months

The price of gas has gone up for the second time in five months.

The Regulator for Energy and Water Services announced that as from today, the retail price for consumers of the 12-kilogram LPG cylinders of Liquigas Malta Ltd is €16, up from €15.50.

Minister for Energy Joe Mizzi announced later that the price would be guaranteed for the entire year.

The price of cylinders of other sizes is to be calculated pro rata based on this price.

This increase in the retail price reflects the increase in the international prices of liquefied petroleum gas (LPG) since the last revision of the retail price that took place in August 2017. In actual fact, since the last price revision the international price of the LPG increased by 25%, the regulator said.

The price of a 12-kilogram gas cylinder, which is mostly used in homes, went up by one euro as from 1 August.

Speaking at a press conference held at the Ministry for Water and Energy, Minister Mizzi said that the increase is minimal when compared with that of the international market.

“The international price of gas has gone up by 25%, but Malta is only going to see an increase of three per cent,” Mizzi explained.

“This is an affordable increase, and I want to thank both parties for reaching a successful conclusion.”

While an agreement between the regulator and Liquigas has been signed to guarantee gas prices for the rest of the year, Mr Mizzi could not say whether any fines or penalties would be imposed should the gas company ignore its obligations.

With regard to commercial entities, the minister said that companies will pay a pro-rata rate when purchasing gas above the weight of a cylinder.