INCREASES IN ELECTRICITY ARE A MATTER OF TIME, AFTER THE PETROL STATIONS - INFLATION SHOWING ITS FIRST TEETH - Filenews 17/3 by Eleftheria Paizanou
Within a week, the crisis in the Middle East raised fuel prices in Cyprus by more than 7 cents per liter, with the largest increases recorded in unleaded gasoline and diesel.
Increases in motor fuels, but also in electricity production, due to the skyrocketing price of natural gas, are recorded in many EU countries, but also elsewhere, including in the United States itself.
The Consumer Protection Service informed that from March 1 until yesterday the price of 95 octane gasoline increased by 10,7 cents per liter, diesel by 16,7 cents and heating oil by 13,6 cents per liter. It also states that the Consumer Price Index in March 2022 was 107 points, while yesterday it was 117 points.
In detail, according to the Consumer Protection Service, of the Ministry of Energy, yesterday the average sale of unleaded 95-octane gasoline was €1.426, while last Monday, March 9, it was €1.35. Essentially, an increase of 7.6 cents per liter was recorded.
Yesterday the average selling price of diesel was €1,592 per liter, compared to €1,462 a week ago. That is, an increase of 13 cents per liter is recorded. In relation to heating oil, yesterday the average selling price was €1,092 per liter while on March 9 it was selling €1,004, an increase of 8.8 cents per liter.
The electricity is also rising
However, the crazy course recorded by oil prices is expected to soon inflate EAC's bills as well. As EAC President George Petrou stated, speaking to Omega, if oil prices internationally remain at existing levels, electricity bills in May will increase by 5%, while by August the increase will be of 15%.
According to Mr. Petrou, within the week the EAC will meet with the President of the Republic. It is certain that fuel increases also lead to increases in the prices of products in the supply chain, which will bring back inflationary pressures.
Voices for the reintroduction of measures
However, yesterday, parties and associations called on the Government to reinstate the subsidy for increases in fuel prices. It is worth noting that in the past the Government applied a reduced consumption tax on fuel.
The Cyprus Consumers Association argued that fuel increases have skyrocketed since March 1 and will continue to increase. According to the association, the financial health of public finances will not be greatly affected by a reinstatement of the fuel subsidy for a certain period of time, calling on the Ministry of Finance to reinstate the fuel subsidy.
According to the association's estimates, the total reduction in retail fuel prices from a possible reintroduction of the subsidy will be 8.3 cents per liter on gasoline and diesel and 6.2 cents per liter on heating oil.
The parliamentary representative of DIPA, Alekos Tryfonidis, stated that the increase in oil prices internationally burdens households, small and medium-sized enterprises and professionals. Mr. Tryfonidis stressed the need for a targeted fuel subsidy, which in the past functioned as an essential relief measure. "DIPA calls on the Government to move immediately and decisively in the direction of restoring the fuel subsidy, with clear criteria and a time horizon for implementation, in order to provide timely and substantial support to society," he added.
For their part, the Ecologists call on the Government to proceed with the restoration of the fuel price subsidy to support households. At the same time, they are calling for the imposition of a ceiling on the profit of fuel companies.
"Society cannot stand any more inaction in the face of high prices. Immediate relief measures are needed, not monitoring developments from a distance. The reintroduction of the fuel subsidy and the control of profiteering are necessary and realistic measures that can help mitigate the consequences of the new increase in prices," the announcement concludes.
