VALLETTA (MALTA) (ITALPRESS/MNA) – Finance Minister Clyde Caruana said the government has a duty to shield Malta’s economy from the effects of the Iran war, insisting energy subsidies will remain in place even if the conflict triggers global economic shocks. Speaking a week after the United States and Israel launched strikes on Iran that reportedly killed the country’s supreme leader, Caruana acknowledged the conflict has already unsettled global markets. Iran later retaliated with missile and drone attacks targeting US embassies, military bases and oil facilities across the Gulf region. Caruana said Malta will not be immune to the wider economic repercussions but stressed the government is prepared to mitigate the impact.
On energy and fuel prices, he said Malta has hedging agreements in place that protect the country from major shocks. While diesel supplies are not covered by such agreements, he said price fluctuations would not significantly affect the country’s finances. The minister argued the conflict differs from the war in Ukraine, noting that sufficient resources in the region could prevent a prolonged crisis. “We have the necessary buffers to absorb the impacts of this conflict,” he said, adding that even in a worst-case scenario the government should maintain subsidies rather than cut support. Caruana rejected the idea of more targeted subsidies, warning that scaling back assistance could undermine economic confidence. He also expressed confidence Malta could continue reducing its deficit while supporting consumers.
A spokesperson for the Energy Ministry said the government’s priority remains protecting families and businesses from international price shocks. Subsidies currently keep Maltese fuel prices below those in other European countries, with unleaded petrol at €1.34 per litre and diesel at €1.21. In tangible terms for Maltese consumers, the price of unleaded petrol is of €1.34 per litre, compared to Italy’s €1.67 per litre and Spain’s €1.49. In the case of diesel prices, Maltese consumers pay €1.21 per litre, whilst Italian and Spanish consumers pay €1.72 and €1.44 per litre, respectively. Meanwhile, Electrogas Malta said Malta’s LNG supply remains secure due to long-term agreements. The company noted shipments mainly originate from the Atlantic basin, meaning supplies are not dependent on routes through the Strait of Hormuz, where disruptions have been reported.
– photo Ministry of Finance of Malta –
(ITALPRESS).
