Global oil prices have surged amid fears that war in the Middle East could disrupt supply through the Strait of Hormuz. 

However, Finance Minister Clyde Caruana assured that the government’s energy subsidies will remain in place regardless of fluctuations in oil prices.

“The current government policy of energy price stability will remain in place. Such stability is especially important during these times of uncertainty,” Dr Caruana told BusinessNow.mt.  

Asked whether the budget estimates may need to be adjusted, he said it is still too early to assess the additional cost arising from recent developments.

Around 15 million barrels per day of oil and 80 million tonnes of LNG passed through the Strait of Hormuz last year, and oil prices could surge further if it effectively closes down.

As it stands, Brent crude, the global benchmark for oil prices, is currently trading at just under $80 a barrel, its highest level since January 2025.

Photo: Clyde Caruana