There is no question of imposing a ceiling on fuel and basic consumer goods, according to information from “P” from government sources. Based on the same information, the government and the competent state services consider that the prices of fuel, but also of basic consumer goods such as bread, milk and water, are within a framework which so far does not justify the issuance of a ministerial decree. for ceiling enforcement.
With regard to electricity prices, government sources say that temporary cost containment and consumer relief measures have already been taken and therefore there is no intention for further measures. It is reminded that consumers and businesses from November 2021 until the end of February 2022 benefit from a 10% and 6% discount respectively through the absorption of part of the basic tariff for electricity charges by the EAC. In addition, a reduced VAT rate of 19% to 5% has been applied to energy consumption for vulnerable consumers for six months, from 1 November to 30 April 2022, while there is a reduced VAT rate of 19% to 9% in electricity consumption for household consumers. included in EAC invoices 01 and 02, however this measure has expired.
According to the same sources, the ministry is focusing on medium-term measures to contain prices for energy consumption and these measures include, among others, the Plan for the production of electricity from RES for own consumption, which was approved by the Council of Ministers in at their meeting on December 21, 2021. At the same time, the same sources indicated that the Sponsorship Plan to encourage the use of RES and energy savings in homes will continue in 2022 along with special provisions for the installation of photovoltaics.
Regarding fuel prices, a source from the Consumer Protection Service told us that they are at the same level as the EU, but when taxes are included, it seems that prices in Cyprus are lower than the European average. “Based on the current data, and taking into account the increased fuel prices internationally, there is no scandal and the imposition of a ceiling is not justified,” said a source of the Service. Finally, when asked about the prices of basic consumer goods and whether there is also no intention on the part of the competent authorities to impose a ceiling, the source of the Consumer Protection Service noted that even in this case there is no such intention. It is worth mentioning that based on data from the competent Service, the price of milk remained stable, while the price of bread increased by 8%, water by 2% and coffee by 7%.
