Filenews 16 March 2022 - by Angelos Nikolaou
In the rest of Europe, even in Greece, fuel prices began to fall since yesterday at petrol stations. In Cyprus, on the contrary, not only did they not decrease but increased further by 15 cents per litre. If you add last Wednesday's increase of another 12 cents in oil, then the total increase in the pump is 27 cents a litre. For gasoline the increase in the week was 4 cents.
This is essentially the second big increase imposed on fuel in our country in a week, despite the fact that the price is plummeting internationally. Specifically, the price of a barrel of Brent fell to $100 a barrel from $140 per barrel on Shrove Monday, showing a 28.6% plunge. In fact, international prices have returned to the levels they were before the Russian invasion of Ukraine.
While international oil prices are now at the lowest level of three weeks, in Cyprus the companies proceeded with new increases, although everyone expected the same phenomenon to be observed with the increases, that is, to reduce at the same rate the prices at the pump of the service stations.
What actually happened yesterday was the announcement by the oil companies of a new large increase, continuing the frantic rally. Gasoline prices remained stable this time (95 octane €1.41 and 98 octane €1.49 per litre), on the contrary the prices of all other fuels increased by 15 cents per litre. This is essentially the second increase since last Thursday when they rose by another 12 cents. As a result, the average price of diesel was €1.71, heating oil €1.26 per litre, while the price of kerosene stood at €1.26 per litre. It is noted that the increases may have been put in two instalments, but they related to the same cargoes that Cypriot companies brought from their suppliers to Greece.
What is happening in Cyprus and should be of concern to the competent authorities is to investigate the existence of the phenomenon of "rocket and feathers" where the prices of petroleum products rise rapidly in times of increases in import costs, while they decrease slowly in periods of import costs reductions, i.e. the situation where prices rise like a rocket and fall like a feather.
According to information provided by "F", the Consumer Protection Agency undertook to investigate this possibility and in case it finds that the increases imposed are not justified or there is a delay in the price reduction, it is not excluded that it will ask the Minister of Energy to take out the last weapon in her hands, which is the imposition of a ceiling. However, based on the current picture of international prices, it is expected from the Consumer Protection Service that in the coming days there will be a decrease in fuel prices in Cyprus as well.
€1.41 per litre petrol, €0.64 is taxes
On Tuesday, March 8, fuel prices fell by 8.33 cents per litre for gasoline and diesel and 6.39 cents a litre for heating oil and kerosene, due to the government's decision to make reductions in excise duty including VAT. Today, therefore, fuel prices are burdened with 35.9 cents per litre for petrol, 33 cents per litre for diesel and 2.1 cents per litre for kerosene and heating oil as in agricultural diesel.
The retail price of 95-octane petrol today at petrol stations is €1.41. At the final price, VAT of 19% has been added, i.e. 27 cents per litre, which if deducted remains €1.14 per litre. If the consumption tax and KODAP are deducted from this price another 37 cents per litre, then the price without taxes is €0.77 per litre. That is, taxes on the price of one litre of gasoline reach €0.64.
