Government tells MCESD energy prices will remain stable despite global tensions

Prime Minister Robert Abela on Friday reassured social partners that Malta’s energy supply and prices will remain stable despite escalating conflicts in the Middle East, insisting the government is prepared to shield families and businesses from external shocks.

Addressing social partners at a specially-convened MCESD meeting, Abela said that both oil and gas supply lines remain secure and confirmed that energy subsidies will continue. He described the government’s approach as one that prioritises ongoing support for households and enterprises, even in the face of rising global uncertainty.

Referring to recent data published by Eurostat, the prime minister noted that inflation across the euro area rose from 1.9% to 2.6% between February and March. He contrasted this with Malta’s performance, stating that inflation locally declined during the same period and is expected to continue easing in the months ahead.

“While no one expected this situation to happen, we were prepared,” Abela said, pointing to the government’s handling of previous crises, including the COVID-19 pandemic and the war in Ukraine. He acknowledged that current global economic pressures may be more intense than those experienced in 2020 or 2022 but maintained that the government has consistently charted a clear path forward.

Looking ahead, Abela said Malta’s energy infrastructure will be strengthened with the completion of a second electricity interconnector later this year. He added that discussions are already underway on the possibility of a third interconnector to further secure supply.

Energy Minister Miriam Dalli also moved to reassure the public, emphasising that the government’s energy policy rests on two main pillars: price stability and security of supply. She dismissed warnings by the opposition regarding Malta’s liquefied natural gas supply as “irresponsible” and “partisan.”

Dalli confirmed that current arrangements guarantee energy supply until August, when the existing contract with Electrogas is due to expire. She added that preparations for the period beyond that deadline are already underway, with several potential suppliers expressing interest in continuing to provide energy to Malta.

“We realise people are concerned when they hear about global developments, but there is no reason for alarm,” Dalli said, reiterating that both price stability and supply will continue to be safeguarded.

Parliamentary Secretary for Social Dialogue Andy Ellul highlighted the importance of ongoing consultation between stakeholders, describing social dialogue as a key strength in Malta’s decision-making process. He said the council provides a platform where all parties can come together to discuss issues of national importance in a constructive manner.

The government’s message throughout the meeting remained consistent: despite international instability, Malta’s energy sector is secure, with plans in place to ensure both immediate stability and long-term resilience.