Filenews 14 March 2022 - by Angelos Nikolaou
The crazy course that fuel prices took after the war in Ukraine, resulted in skyrocketing prices and literally catching fire at the petrol stations of Cyprus.
The government's decision to reduce by 6.4 cents the price of heating oil and 8.3 cents in the price of diesel fuel, resulted in the price at the pump being reduced for only two days. That's because the oil companies proceeded almost simultaneously with the reductions in increases of 7 cents in gasoline and 12 cents in diesel. Therefore, today the average price of diesel is more expensive than last Tuesday by 4.3 cents a litre, the price of heating oil by 6.4 cents, while the price of 95-octane petrol is 3.6 cents a litre cheaper. In the price observatory of the Ministry of Energy the average prices of the main petroleum products are: gasoline of 95 octanes of €1,408 per litre, diesel of €1,544 and heating oil of €1,091.
The Consumers' Association complained that the actual reduction in petrol stations was less than the excise duty decided by the Government. Specifically, on Tuesday the consumption tax while reduced by 8.33 cents a litre the price of gasoline 95 was reduced by only 7.1 cents and diesel by 7.5 cents. Similarly, heating oil was reduced by 5.8 cents a litre, instead of 6.4 cents when the tax was reduced.
The maintenance of oil prices at high levels and the almost total energy dependence of Cyprus on petroleum products justify a greater intervention by the government towards the EU, with the aim of allowing a further reduction in the prices of the consumption tax, but also of the VAT on petroleum products. This is because of the over-dependence on the car as a means of transport and the reduced interest in alternative means of transport, at least by Cypriots.
In recent days, however, the price of Brent oil plunged 12.5% and closed at $112 a barrel. It is noted that the price of Brent oil reached 140 dollars on Shrove Monday. On Friday, the price even fell to $105.6, recording a drop of more than 17%. The decline comes after reports that the United Arab Emirates will recommend to OPEC to increase production.
