Enemed has this week concluded a number of transactions which will result in a reduction of both petrol and diesel prices of their products at the pump, a statement issued by the DOI said.
This comes after Energy Minsiter Konrad Mizzi told parliament last week that the hedging agreement is nearing its expiry date and therefore prices would be reduced.
The reductions will come into effect over a number of months and will come in place before various previous hedging agreements come to an end. In 2014 these agreements have guaranteed lower stable prices at the pump in spite of high oil prices.
The first reduction of 4c for both petrol and diesel will take place as from Monday. Petrol prices will be reduced from 1.42 to 1.38 and Diesel prices will be reduced from 1.35 to 1.31 per litre.
Further reductions will be announced over the coming months.
This will be the seventh reduction of petrol prices and the fifth reduction of diesel prices under this administration and which has been announced on the day when the price of oil spiked upwards by 8%. This is the highest spike in daily oil prices since 2009, the statement continued.
“In 2014 Malta benefited from reduced fuel prices and stability which contributed to a reduction in inflation and further economic growth.
“This contrasts significantly with the previous administration where in the second half of 2008 oil prices dropped by 51% and Energy prices rose by 20%. Today the Opposition does not have a plan for Energy and did not even take a position on whether it prefers fuel price stability,” the statement read.
PN dubs government’s decision to reduce fuel prices by onle four cents a ‘joke’
The PN has described the government’s latest decision to reduce fuel prices by only four cents as a joke.
In a statement issued soon after the government made the announcement, the PN said that the reduced prices do not really reflect the prices our European counterparts are paying on petrol and diesel.
“Despite the fact that the prices of fuel would be reduced on Monday, we will still be paying the highest prices for fuel in the whole of Europe.
“It is obvious the government took this decision since it could no longer take the pressure made by the Opposition on the government to reduce the prices.
“This decision confirms that the Opposition is right when it insists that the prices of petrol and diesel should be reduced,” the PN said.