The Association of Small and Medium Sized Enterprises (GRTU) has written to the Malta Resources Authority to see what action it is taking to ensure that the price of fuel does not continue to rise in order to safeguard the interests of the economic operators in Malta.

In its letter to MRA chairman Austin Walker, the GRTU said the Enemalta Corporation, as the monopoly in Malta responsible for fuel, is increasing the price of diesel and other fuels. The repeated price increase for fuel, it said, especially diesel, is having a drastically negative impact on the economy.

“In addition to the increase in VAT and the introduction of the Eco Tax, the increase in the price of diesel is a dominant factor behind the rise in the rate of inflation. Malta should not be suffering from a high inflationary rate, as the state of the national economy as reflected by the level of national output does not correspond to an inflationary situation. The ripple effect of diesel price increases continue to be felt for months and the cost structure of many basic services have now changed drastically, due to an almost doubling of diesel prices over a relatively short period of time,” it said.

“The GRTU is now urging the MRA to publicly state its position on the issue of diesel price increases and explain what action the regulator has taken to ensure that the state monopoly does not impose its will on the market, irrespective of the economic and social consequences of persistent and hefty fuel price increases. GRTU expects you also to declare what action you have taken to ensure that the Enemalta Corporation utilises the most economic, professional and efficient systems to ensure that the whole process, from procurement to delivery of fuels, leads to the production of the best possible and most competitive price of fuels on the Maltese market. GRTU considers the energy question is one important factor causing the current state of disequilibrium in the Maltese economy,” the association said in its letter.