Filenews 12 July 2021 - by Adamos Adamou
Changes in the monitoring framework for oil prices, which is essentially implemented by the liberalization of the sector resulting from the country's accession to the EU and which is often the target of criticism, particularly in times of increases, are being promoted by the Consumer Protection Agency of the Ministry of Energy.
To this end, the Consumer Protection Agency (SSC) commissioned the Positive consortium to carry out a study, and a public consultation on the subject was launched. As the Deputy Director of the Ministry of Foreign Affairs Antonis Ioannou told "F", the modernisation of the monitoring framework is necessary due to changes that have occurred in the market in recent times. In them he ordered the movement of the facilities of the oil companies from Larnaca to Vasilikos, the mixing of biofuel in fuel and the changes in the way companies manage their cargoes.
He said that the company that undertook the study would also take into account the ongoing public consultation and that it would then proceed with the creation of a new computer system. According to Mr Ioannou, the aim is for the new system to enter into force by January 2022. The ultimate objective of what is being promoted, however, is not to abolish the 'weapon' of imposing a price cap when they are unduly high, but, on the contrary, to improve the framework which gives this power to the Energy Minister concerned. As stated in the public consultation document, 'the new framework aims to improve the way in which oil prices are monitored by the IEAB and to establish specific criteria for the application of the welfare of Laws 115(I)/2004 and 57(I)/2010, with regard to the adoption of a maximum price decree'.
The same document summarises the existing price monitoring framework and all interested parties are invited to answer specific questions to improve it. Among other things, the EPA, after taking note of the tools it currently uses to inform the public, such as its weekly bulletin and the online observatory on petrol station prices, consults citizens on "what other public monitoring and information measures could be implemented by competent public bodies in order to increase transparency in the oil market and consumer confidence". Subsequently, reference is made to oil price fluctuations, which is often a topical issue, and the SSC, after explaining that "the adjustment of retail oil prices in relation to fluctuations in international prices (which do not always follow crude oil prices as they are now a stock market item) is often carried out with some delay, and/or the price change is not equivalent to the change in international prices", also asks for the views of the public. On the question of fluctuations, interested parties are invited to answer the following questions:
- How do you think the speed at which domestic prices should be adjusted in relation to international prices should be assessed?
- Taking into account the specificities of Cyprus (small market, without own production of petroleum products, island - therefore fuel prices are affected by transport costs, while in other countries either there is access to fuel pipelines or refineries and the supply of retail sector may be done directly from refineries), how do you think that differences in retail prices before tax with countries similar to Cyprus should be assessed such as Greece and Italy?
All interested parties are invited to submit their views to the Ministry of Energy at aioannou@cys.mcit.gov.cy or fax 22200975 by Monday 9/8/2021 at the latest.
