The MHRA has said it is concerned about a further increase in fuel as announced yesterday, and in particular to the increase of thin fuel oil which is extensively used in the hotel industry. The cumulative increase of thin fuel oil over the past thirteen months exceeds 50%, which MHRA said is putting a heavy burden on the industry.

The MHRA went on to say it, “calculates that the increase in the cost of thin fuel oil alone, over the past months, has cost the hotel industry around €2,450,000 million, which averages at €18,550 per hotel, per annum. This increase does not include the consumption of diese and petrol, which if added will push up the cost of increases on fuel to around €20,000 per hotel over the past year.”

“Thin fuel oil is extensively used by the hotels for heating purposes during the winter months when the industry generally operates at a loss and consequently this, in addition to the very high utility rates, will probably push more hotels to consider closing during the winter period, as further losses will become unsustainable. If this had to happen this will have a detrimental effect on the tourism industry at large and indeed on the economy.”

The MHRA commented that it is also concerned about the fact that the cumulative percentage increase of thin fuel oil surpasses that of other fuel prices and it will be writing to the Malta Resources Authority asking for an explanation.

The MHRA concluded by saying it appeals to Government to look into this matter in order to find a way of curbing the increases on the cost of fuel, as such hefty increases are rendering the entire islands less and less competitive.

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