Issue link: https://maltatoday.uberflip.com/i/1546553
GOVERNMENT subsidies have shielded Maltese motorists from rising global fuel prices but die- sel's extraordinary upward trajectory now has Finance Minister Clyde Caruana worried. By April and May, govern- ment was forecasting an an- nual subsidy on diesel alone to the tune of €30 million, Caruana said when contact- ed by MaltaToday. But that forecast has since more than doubled. "Until three weeks ago, the forecast subsidy on diesel for the period January-Decem- ber 2026, had risen to around €75 million from €30 million just three months earlier and the way prices are go- ing there is no end in sight," Caruana said. Diesel's steep upward tra- jectory and other fuel price in- creases are cause for concern ahead of next year's budget announcement. Caruana is ad- amant that energy prices need to remain stable, necessitating a higher outlay on subsidies. But maintaining the fiscal deficit below the 3% target is also "sa- cred", he insisted. Balancing the two will be his biggest challenge and Caruana is un- der no illusion that something will have to give despite the government having set aside a €250 million energy subsidy buffer earli- er this year. "If need be, I will have to take a clos- er look at other areas of expendi- ture within the en- tire government's commitments," the finance minister said without elabo- rating. Loosely translated, Caruana's words indicate that government will have to cut or limit expend- iture elsewhere as it prioritises indiscriminate energy and fuel subsidies. Several sources within govern- ment, who spoke to MaltaToday on condition of anonymity said government agencies are brac- ing themselves for cuts in their budgets or no increase in fund- ing for 2027. YOUR RIGHT TO KNOW WWW.MALTATODAY.COM.MT SUNDAY 13 SEPTEMBER 2026 • ISSUE 1402 • PUBLISHED EVERY WEDNESDAY AND SUNDAY maltatoday €2.20 Not pleasing everyone The moon and Mars We look at the charges against Yorgen Fenech and how they were argued in court Ex-MP Albert Buttigieg believes Malta's two big parties are too reliant on business interests Scientific endeavour could soon see humans back on the moon but what about Mars? INTERVIEW MT2 PAGES 10-11 Testing the evidence CONTINUES PAGE 4 PAGES 13-15 Cheapest diesel in Europe but Clyde Caruana issues expenditure warning KURT SANSONE ksansone@mediatoday.com.mt Finance Minister Clyde Caruana addressing a Labour Party mass meeting in Mqabba on 17 May during the election campaign (Photo: Daniel Tihn/ MaltaToday)