Filenews 13 May 2022 - by Angelos Nikolaou
Fuel prices in Cyprus are now outrageous, rising even though the international price of Brent oil remains stable at just over $100 a barrel. Consumers are rightly concerned that they are afraid even of entering petrol stations, since with the money they have available in their pockets they are supplied with fuel in order to gain another few kilometres.
The price of gasoline and especially diesel in recent weeks has soared to levels that the Cypriot driver could not have imagined in the summer of 2020, when in the midst of measures during the coronavirus pandemic, with €1 you were buying more than 1 litre of motor fuel. Since yesterday fuel prices have risen further. Another 4 cents on the price of oil and an additional 7 on gasoline. As a result, the average price of unleaded 95 is €1.561 per litre, while for diesel the price is €1.793 per litre.
After yesterday's increases, which clearly show that not all petrol station owners took advantage of, there are huge fluctuations in the market. As a result, unleaded is sold from €1.505 to €1.690 per litre, i.e. a difference of €0.185 per litre, while the price of diesel is available from €1.711 to €1.865, i.e. the difference is €0.154 per litre. Heating oil is sold from €1.212 to €1.370 with an average price of €1,268 and a difference more expensive than the cheapest service station of €0.158 per litre.
The president of the Cyprus Consumers Association, referring to the new fuel increases, expressed his concern. As he said only for the increases, consumers paid from January until today a total of €42.2 million. In fact, it estimates that the state's revenues for the two months of May – June 2022 will increase further by €31.4 million. He explained that for the March – May quarter when the consumption tax was reduced, the state's revenues decreased by only €15.4 million.
He spoke of an even greater increase in the state's revenues from price increases and in particular due to value added tax and called for an extension, for at least another three months, of the reduction in excise duty to the lowest level foreseen by the EU.
Since the beginning of 2022 there is an upward trend in fuel prices and there are no signs of recession according to Mr. Drousiotis. Specifically, the average price of 95-octane petrol in January 2022 was €1.229 to reach €1.581 today, an increase of 35.2 cents per litre and diesel from €1.419 in January to €1.793 per litre, an increase of 37.4 cents per litre.
The price of Brent oil is currently at $107 a barrel, while it has also approached $139 a barrel. In Cyprus, prices remain steadily rising despite the fluctuations in the international price. It is noted that in Cyprus no crude oil is imported but ready-made petroleum products such as gasoline, diesel and heating oil. Therefore, domestic demand is fully met through the import of ready-made refined products. For the pricing of ready-made refined products imported into Cyprus, the daily Platts Basis Italy index is used for each type of fuel. It is emphasized that each fuel has its own variation. Therefore, the retail prices of petroleum products in Cyprus are influenced by a significant number of factors, such as the import price of the products, the inventories held by the oil companies at the time of import of the fuel, the exchange rate of the dollar against the euro and the taxes imposed by the state.
Pilidou: In the Presidential with new measures to stop the increases
Work is being done to expand the measures taken in light of fuel price increases, The Minister of Energy, Trade and Industry, Natasa Pilidou, said yesterday. She added that due to the reduced excise duty on fuel we see that we are one of the lowest states in cost, within the cheapest five in recent months. "But we've definitely all seen the noticeable difference compared to what we were paying before. Therefore, for all the products that have been affected, whether they concern electricity, fuel, basic necessities, a preliminary work is being carried out and discussions will be held in a meeting with the President of the Republic to see what additional measures can be taken", said Ms. Pilidou.
She pointed out that "certainly with our new bill for the RES-EX.E. Fund, a reduction of the electricity consumption charge is also promoted in the tariffs of the EAC, where it will hopefully be reduced with the passage of the law from 0.5 cents per kilowatt-hour to 0.1 cents per kilowatt-hour". And we will see what other measures can be included in our toolbox, given that unfortunately the war continues, she added.
