As diesel prices soared above the price of petrol, the former president of the Chamber of Commerce, Reginald Fava, yesterday said a general price-hike will take place as the agreement between government and business on price stability yesterday came to an end.
Fava yesterday said the diesel price increase would “set the example for others to follow suit” – a warning he first made on Reporter in November in an interview with Saviour Balzan.

Fava, a pharmaceuticals importer, said that instead of seeing a gradual increase in prices over the past six months – when the price stability agreement was in force due to Malta’s changeover to the European currency – “we will now end up faced with a sudden price-hike. This is a natural reaction.”
On the other hand, he said that since medicinal importers were not part of the stability agreements, medicines had reflected realistic prices in the market.
Fava was the most vociferous critic of the price stability agreement which he described as “unacceptable” and issuing the ominous warning that it would lead to an “explosion in prices”.
Fava said the price of food and labour costs were also expected to increase. “This cannot be controlled due to the situation with rises in the cost of energy… the price index threatens to be rocked, and this will of course make a difference in salary structures. Every time fuel price increases, everything else does. Again, it is a simple natural reaction.”
The spokesperson for the Malta Chamber of SMEs (GRTU) also agreed with Fava. Carlo Cini said higher diesel costs would increase transport costs, and “everything else” – however claiming that Malta was among European countries where diesel was relatively cheap. “In Italy diesel is sold at €1.38 per litre, whereas in Malta it costs €1.10.”