41 percent of readers of The Malta Independent online believe that the increase in price of gas will lead to a ripple effect on other products. The poll was conducted on this website after news last week that the price of gas increased for the second time in five months.
The online poll, which is not a scientoific survey, asked “Will the increase in the price of gas negatively affect you?” the following results were found for the following options:
1. No, 50c is not much 21%
2. Yes, it takes away a good chunk of Cost of living adjustment (COLA) increase 31%
3. No, it is little compared to international price increase 7%
4. Yes, it will lead to a ripple effect on other products 41%
From the sample of people who voted on the online poll, 31 percent believed that the increase in the price of gas would negatively affect them and take away a good chunk of their COLA increase. This brings the total percentage of people who believe the rise will negatively affect them to 72%.
21 percent did not believe that the price of gas would negatively impact them since 50c is not too much. Lastly, 7 percent think the increase would not impact them negatively since the price is still low compared to the international price increase.
The regulator for Energy and Water Services had announced that the retail for consumers of the 12kg LPG cylinders of Liquigas Malta Ltd is €16, up from €15.50. Minister for Energy Joe Mizzi had confirmed that the price will be guaranteed for the entire year.
From the 1st August, a 12-kg gas cylinder, mostly used in homes, went up by one euro.
Increase in retail price is reflected by the increases of international prices of Liquefied Petroleum Gas (LPG). In actual fact since the last price revision the international price of the LPG increased by 25%, the regulator said.
Mizzi last week had 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 3%," Mizzi explained.
While an agreement between the regulator and Liquigas has been signed to guarantee gas prices for the rest of the year, Mizzi could not say whether any fines or penalties will be imposed should the gas company ignore its obligations.With regards to commercial entities, Mizzi said that companies will pay a pro-rata rate when purchasing gas supply above the weight of a cylinder.