Updated - As from January 1 the price of petrol will drop by 3c per litre and that of diesel will drop by 4c, despite an increase in excise duties of 3c, the finance minister said in the Budget speech.
Excise duty on lubricants will increase by 2c while paraffin will rise by 3c per litre. Gas prices will remain unchanged till April.
Prof Scicluna said the financial allocation for road maintenance will be increased by €3 million to €13 million and private-public partnerships will be negotiated next year on road maintenance.
The minister said works on the Kappara flyover junction will start in the first quarter of next year and take two years. That will be followed by the Marsa junction project. Works will also start next year on Vjal ix-Xarolla in Zurrieq and Triq Patri Palagju and Triq Anthony Aquilina in Zebbug.
Decisions on the use of heavy vehicles and horses on the roads will be announced shortly. The government is also considering new forms of transport, including on land people movers and underground tunnels.
Incentives will be given to employers who provide bicycle racks.
Over the coming months Transport Malta will hold consultations with road users on ways to ease congestion.
Prof Scicluna said the bus service is a 'works in progress' but there has been improvement. The government would await the introduction of the new route network and insist on frequency and punctuality.
VAT on vehicle registration tax paid in 2005 will be refunded next year.
SCHOOL AND WORKERS' TRANSPORT
The subsidy given to parents of church and private school children on school transport will be retained while the government considers new schemes in this area.
The government will also consider schemes on collective worker transport to industrial estates. The schemes will be held jointly with the companies in those estates. One option would be for the government to give rebates to companies which issue tallinja bus cards to their workers.
SUBSIDIES ON PURCHASE OF ELECTRIC AND HYBRID CARS
As of next year, those who scrap their cars, over 10 years old, and buy an electric vehicle will get a rebate of €7,000. If the old car is not scrapped, the rebate will be of €4,000.
The subsidy on an electric quad bike will be €2,000.
The subsidy on the purchase of hybrid cars will be between €3,000 and €2,000 as long as an old car is scrapped. Electric cars will be exempt from CVA.
The scrappage scheme on ordinary cars will see a subsidy of up to €700.
Electric and hybrid cars will be exempt from CVA. Companies which buy electric or hybrid cars will get financial incentives.
Cars will a mileage of over 160,000km will need to be VRT tested every year instead of every two years.
The licence for small motorcycles is being reduced to a flat rate of €10. The rebates for those who buy electric bikes will also be increased.
Fines for drink driving and use of mobile phones while behind the wheel will be substantially increased.