Remaining the reduced fuel price, the Oil Tankers ask
Given the large drop in fuel prices compared to a year ago when the measure was implemented, the reinstatement of the fuel consumption tax is justified, the President of the Cyprus Consumers' Association, Marios Drousiotis, told KYPE. On the contrary, Mr. Drousiotis considers that the electricity subsidy should continue, as the reasons for which it was imposed still apply.
Meanwhile, in favor of continuing the suspension of the fuel consumption tax is Association of Oil Stationers.
Mr. Drousiotis noted that the return of the consumption tax means an addition of 8.3 cents to gasoline and diesel and 6.2 cents to diesel. The Association's position is that the return of consumption tax can be considered justified due to the fact that since July 12, 2022, when the highest fuel prices were recorded, gasoline has decreased by 45 cents per liter, diesel by 62 cents per liter and 51 cents per liter of heating oil.
“We consider these reductions to be significant and give the state the justification to reinstate the fuel tax,” he noted.
However, regarding the eventual abolition of the electricity bill subsidy, Mr. Drousiotis noted that it is neither appropriate nor justified. Noting that the cost of the electricity subsidy for the average household amounts to €70 per two months.
“This subsidy cannot and is not justified to be abolished, for two reasons. First, electricity remains at very high prices. Since July 12th it has only fallen around 7%. The reasons why the subsidy was given, unlike fuel, have not been eliminated.
The second reason, he added, is that we consider the state to bear the greatest responsibility for the increased electricity prices, because the actions and omissions of the state and the authorities, throughout the last decade, are responsible for the high prices, because it did not do right his job so that we are not now paying these increased prices and paying €250m a year for pollutants.
He noted that on this issue, the Cyprus Consumers Association “has been insisting for two years that an investigation be carried out to assign responsibility for why consumers are paying hundreds of millions for electricity today”. According to Mr. Drousiotis, 30% of the electricity bill paid by consumers could be avoided.
Remaining the reduced price on fuel, the Oil Tankers ask< /h3>
The President of the All-Cyprus Association of Petroleum Dealers, Savvas Prokopiou, told KYPE that there is expected to be an increase in fuel prices of around 8 cents, after the return of the fuel consumption tax. The Association's position, according to Mr. Prokopiou, is that the reduced fuel price should remain, due to the competition from the low prices in the occupied territories.
“We have a very serious problem regarding the prices, because there is the big issue of the occupied, which we have a huge difference with the prices”, he said, noting that “our constant request is for the government to try to reduce this difference, so as to eliminate the problem”.
He added that prices should be at even lower levels, which is why, as an Association, he is in favor of continuing the suspension of the consumption tax on fuel.
It is recalled that in his statements in KYPE on Friday, the Minister of Finance, Makis Keraynos had stated that the government will study the matter very carefully with the decision making expected in the next few days, underlining the temporary nature of the measures. The period for the imposition of reduced consumption tax on fuel ends on June 30.