The recent price rises for fuel and milk are putting a great pressure on persons with low and medium income.

Two of Malta’s largest unions – the General Workers Union and the UHM Voice of the Workers have come out calling for compensation to be given to Maltese families as a result. Rightly so.

The price increase is not small. A rice of around 10c for milk and 5 c per litre of fuel adds up over the months.

The Maltese government had released a statement on the issue, saying that fuel prices in Malta remain lower than the EU average. It said that the international price of oil rose from €47 a barrel to €57 a barrel over the past seven months – an increase of 21%. While fuel prices increased several times in the EU, in Malta they had remained stable. The revised price of petrol is 3 cents cheaper than the EU average, while the prices of diesel is five cents cheaper.

However the rise is of serious concern given the fact that Maltese wages are not as high as those in the UK, France or Germany. While Malta is not in the lowest wage bands in the EU, the fact remains that families are already struggling with sky-high property prices, with high bank loans, with problems taking out bank loans....

There have been calls for the government to consider adopting a living wage, which should perhaps be more widely debated and considered. There have also been calls to change the COLA equation to be more favourable for workers, which is something that should also possible be considered.

If the economic surplus is not benefitting the people, then who is it benefitting?

Having a low unemployment rate is great, but if wages are not rising at a rate where the Maltese people could live comfortable, given the rising prices, then perhaps the government needs to modify its strategy and ensure that the Maltese are benefitting more from the country’s success.

Given that the General Workers Union is also calling for workers to receive compensation, the government might be pressured into actually taking such a course of action.

Indeed it is not without precedent. Back in 2011, 62,365 individuals and 34,195 families were to receive a “one off” government cheque to compensate for the recent increase in the price of fuel.

The UHM has also demanded explanations as to what lead to the price rise for consumers, and such a request is one which should be supported.

At the same time, the government could also start looking into creating more initiatives to reduce car usage on the roads, and promote electric vehicles and alternative transport. Reducing dependency on private cars operating on traditional fuels will help reduce the impact of rising oil prices. Indeed the government recently announced an increase in the number of buses, all well and good, but this is not enough.

The number of cars on the road is rising at a very quick rate, and alternative thinking is required. Widening roads makes people believe that the traffic problem is being solved. It isn’t, and it is that very thinking that will result in more people opting for private car use, instead of car sharing, or using public or alternative transport. In order to counter this, serious consideration needs to be given to public transport, to cycling infrastructure, and to alternative transport means.