Decision on revision of fuel surcharge by end of month

The Government is actively considering a revision of the fuel surcharge introduced during last year's Budget as the price of oil is continuing to rise. Speaking to The Sunday Times following the conclusion of a two-day informal finance ministers' meeting of the EU in Manchester, Dr Gonzi said that the government is currently conducting internal studies on the impact which high oil prices are having on the Maltese economy and will be taking the necessary decisions by the end of the month.

"We cannot exclude anything at this stage. Unfortunately, the price of oil has been on the rise and our economy is suffering. Since the surcharge was introduced, the price of oil continued to soar and this is resulting in millions of liri in extra costs for the Government. We obviously cannot go on like this for ever and we will have to take the necessary measures."

Oil prices were boosted to record highs of nearly $71 per barrel by the damage inflicted on US refineries and oil rigs by Hurricane Katrina. Last Friday the price eased to around $64 per barrel after the International Energy Agency began releasing reserves. However, when the government introduced a 17 per cent surcharge on electricity bills, the oil price was still $45 per barrel.

Oil prices dominated yesterday's EU finance ministers' meeting.

In a statement, the 25 ministers urged oil-producing countries and companies and consumers "to recognise their common interest in ensuring sufficient supplies of oil".

"They call on oil companies to increase investment in oil exploration, production and refining capacity, and alternative energy services," it said. "They also call on countries and international institutions to work to remove barriers and create a climate conducive to investment throughout the supply chain."

Luxembourg's Prime Minister and Minister of Finance, Jean Claude Juncker, said that if oil remained expensive in the fourth quarter, economic growth will be affected considerably.

During the informal meeting the Prime Minister was accompanied by Parliamentary Secretary Tonio Fenech and Michael Bonello, governor of the Central Bank.

Although the agenda of the meeting was quite intense, it also had its lighter side. Yesterday afternoon, at the end of the meeting, Dr Gonzi accompanied the other EU finance ministers to Old Trafford Stadium and watched Manchester's football derby between United and City.