Utility, gas and fuel subsidies to remain amid soaring energy prices: PM

Updated with Minister Dalli comments 6.20pm

Robert Abela on Monday told parliament that utility, gas and fuel prices will remain subsidised despite energy prices soaring abroad amid supply disruptions caused by the Israeli-US war on Iran. 

Earlier, oil prices rocketed above $100 a barrel for the first time since Russia's invasion of Ukraine in 2022, as Iran carried out retaliatory strikes against crude-producing Gulf nations.

Prices started soaring earlier this month when the crucial Strait of Hormuz - through which about a fifth of global oil transits - was effectively closed off amid retaliatory fire.

The prime minister noted in parliament on Monday that the escalation of the conflict was having an unprecedented international impact. He added that "in the face of the serious situation, as a neutral country, we remain focused on calling for de-escalation".

Abela said that the island could not remain silent: being neutral did not mean being passive. Malta had an obligation to speak up about international stability, and its neutrality ensured heightened credibility when it urged dialogue, Abela added.

The prime minister, meanwhile, thanked the diplomatic corps and government officials who had managed to evacuate people from Dubai to ensure the safety of Maltese citizens.

Almost 200 Maltese citizens caught in the United Arab Emirates following the war outbreak were flown home at the end of last week. 

While noting that the government was committed to ensuring stability, certainty and security, Abela said the government could also guarantee "among the cheapest prices" for utilities, gas and fuel as it had been doing for the past six years. 

Had the government not had such securities in place, and considering the current international price of fuel, the price of petrol would have increased by 38c per litre on Sunday, while that of diesel would have gone up by an extra 45c per litre, Abela said. 

He promised the government would continue subsidising prices, noting it had just presented "the best budget in history" and adding that the country also had " a strong warchest".

Opposition backs subsidised prices

Reacting to the prime minister's address to parliament, PN leader Alex Borg said he would not try to score political points and instead extend the hand of friendship in such turbulent times. 

He said the Opposition agreed with the government on subsidising utility prices, and if the PN was elected to government, it would retain such subsidies. 

He urged the government to plan for any eventuality when it comes to the stability of prices, reiterating the need for a national fund that would assist importers hit by increasing shipping fees. 

The Opposition leader also reiterated his call for national unity during such challenging times, noting that Malta should speak up in one united voice, especially at a time when an international issue could impact the island.

Earlier, he told parliament that such moments of political tension made one realise how important it was for all institutions to work together to protect people.

He also thanked the diplomatic corps and those who helped repatriate Maltese citizens when the war erupted in the Gulf. 

The Opposition, he said, had offered its support to the government to ensure peace of mind and so that whoever is left in the Middle East would be returned as soon as possible.

He also called on the authorities to continuously update local family members of those in the Middle East about efforts to ensure their safety.

Diversity in energy supply means more stability: Dalli

Malta has a diverse mix in its energy procurement, which allows consumers increased stability, Energy Minister Miriam Dalli said on Monday. 

Last week, Dalli said the spike in international oil prices would not impact local consumer prices.

Following a surge in oil prices, Times of Malta asked Dalli on Monday what would happen if one of Malta’s suppliers declared a force majeure. The minister said the island has diversified sources that were not impacted “at this point in time”.

“When we speak about stability, we are not just speaking about stability in prices, but also stability in supply,” she said.

“We have a diversified mix when it comes to the energy that we procure: there is the interconnector, the energy plant and renewables. Diversification from where we procure LNG gives us more stability, so that our risk is more widespread.”

When pushed on whether she was concerned about Malta being impacted by the surge in prices, Dalli said Malta was not living in a bubble.

“We are constantly following what is happening on the international markets.”

Sky News 'certified our efforts': Robert Abela

When answering questions by fellow MPs, Abela failed to reply to questions by Edward Zammit Lewis and Darren Carabott on whether any Maltese were still caught in the war-torn region. 

Instead, he said Sky News had provided a "certificate" for the government's efforts to bring Maltese citizens home. 

He then added that the government was doing everything possible to ensure the security of Maltese in the region.