Filenews 24 March 2024 - by Eleftheria Paizanou
For consumers from April 1, fuel prices will rise again as the measure of reducing excise duty on fuel ends.
The Government does not appear willing to proceed with a new extension of the measure, as it considers that fuel prices are lower than in March 2022, when the reduced consumption tax on fuel was first implemented.
Therefore, from 1 April we will be paying 8.33 cents more for unleaded 95 octane petrol and diesel for heating oil by 6.33 cents per litre.
With the increases that will be imposed from 1 April, unleaded gasoline will be sold (if no other price increases occur from the market itself) at a price of €1.49 per liter, from €1.41 which is currently the average selling price of gasoline, according to the retail fuel price observatory of the Consumer Protection Service.
The price of diesel will rise to €1.58 per litre, from €1.50 today.
In relation to heating oil, the price will reach €1.59 per liter, from €1.06 until today. It is worth noting that the new increases will be in addition to those imposed by the market in the last month and a half, which amount to 7.5 cents per liter for unleaded 95-octane gasoline and 6 cents for diesel. It is recalled that the reduction of excise duty on fuel is implemented as of March 2022, resulting in the loss of more than €80 million in revenue.
According to the Government, the European observatory shows that Cyprus is in the third lowest position in Europe in the price of unleaded 95 octane petrol and in the fourth lowest position in the price of diesel.
Will they go further upstairs?
After all, the shock for consumers will not stop here, as it is estimated that a carbon tax, also known as green taxation, will be imposed early in the summer. Fuel prices, at least for this year, will rise by 5 cents a litre and if VAT is added the price will be increased by 6 cents a litre.
In the coming years, the green hike will increase gradually, to reach 25 cents a liter by 2033. The relevant bills were put to public consultation and are expected to be submitted to Parliament soon, as green taxation is included in the prerequisites of the Recovery Fund. It was originally planned that the green tax would be imposed in April, but due to the delay in the completion of the bills and the consultation, it will be postponed for a few months.
At the same time, the study on compensatory measures is underway, so that this tax is neutral, according to the Ministry of Finance. A relevant study is being conducted by the University of Cyprus Research Centre on behalf of the Ministry of Finance. On Tuesday, the parliamentary Trade Committee, in the presence of Finance Minister Makis Keravnos, will discuss the impact on households and businesses in the tourism, industry and agriculture sectors of green taxation and the need to grant compensatory measures. MPs will demand to be informed of the government's intentions in relation to the measures.
