CYPRUS: Oil prices skyrocket to pre-consumer tax reduction levels

Motorists have seen no benefit after Cyprus MPs voted for a decrease in consumer tax on petrol in December, as pump prices are nearly back to the same levels.

After international oil prices fell, combined with the tax cut petrol at the pumps (95 Octanes) fell to EUR 1.05 per litre from 1.24 at the beginning of December 2018.

With petrol now sold at around 1.21 on average, consumers believe petrol companies are indulging in profiteering.

Cypriot MPs discussed the matter on Tuesday, with members of the House undecided on whether the recent hikes are legitimate or not.

The motion was tabled by Elias Myrianthous, MP for EDEK who had voted against the reduction in the consumer tax on fuel, claiming that the EUR 35 mln ‘gift’ to consumers wouldn’t go very far.

While ruling DISY MPs found no wrong doing on behalf of fuel companies, proven by the fact the profit margins have remained the same, opposition parties slammed the government for not taking measures to protect consumers.

AKEL MP Costas Costa said that prices had begun to rise steadily after the tax reduction, with 95 octane Unleaded petrol price rising from 1.05 in mid-December, to 1.21 cents.

He said the government is unable to explain why when crude oil was being sold at USD 140 a barrel, the price of petrol stood at EUR 1.40 cents a litre, and while today it is being sold at USD 66, with the pump price being EUR 1.21.

Commerce Ministry officials argued the recent increase in oil prices were in no way an indication of profiteering by petrol companies.

A Commerce Ministry representative told MPs that the actual increase is between 6 and 7 cents, which does not call for an intervention from the state.

Cyprus Green MP George Perdikes, said the reduction of the consumer tax voted by the Parliament had not helped consumers.

We had predicted that the reduction would be absorbed by the market at the expense of consumers and businesses, and we said that in 4 months the retail price of fuel would be back at the same level, said Perdikes.

Source: The Financial Mirror

CYPRUS: Oil prices skyrocket to pre-consumer tax reduction levels

Motorists have seen no benefit after Cyprus MPs voted for a decrease in consumer tax on petrol in December, as pump prices are nearly back to the same levels.

After international oil prices fell, combined with the tax cut petrol at the pumps (95 Octanes) fell to EUR 1.05 per litre from 1.24 at the beginning of December 2018.

With petrol now sold at around 1.21 on average, consumers believe petrol companies are indulging in profiteering.

Cypriot MPs discussed the matter on Tuesday, with members of the House undecided on whether the recent hikes are legitimate or not.

The motion was tabled by Elias Myrianthous, MP for EDEK who had voted against the reduction in the consumer tax on fuel, claiming that the EUR 35 mln ‘gift’ to consumers wouldn’t go very far.

While ruling DISY MPs found no wrong doing on behalf of fuel companies, proven by the fact the profit margins have remained the same, opposition parties slammed the government for not taking measures to protect consumers.

AKEL MP Costas Costa said that prices had begun to rise steadily after the tax reduction, with 95 octane Unleaded petrol price rising from 1.05 in mid-December, to 1.21 cents.

He said the government is unable to explain why when crude oil was being sold at USD 140 a barrel, the price of petrol stood at EUR 1.40 cents a litre, and while today it is being sold at USD 66, with the pump price being EUR 1.21.

Commerce Ministry officials argued the recent increase in oil prices were in no way an indication of profiteering by petrol companies.

A Commerce Ministry representative told MPs that the actual increase is between 6 and 7 cents, which does not call for an intervention from the state.

Cyprus Green MP George Perdikes, said the reduction of the consumer tax voted by the Parliament had not helped consumers.

We had predicted that the reduction would be absorbed by the market at the expense of consumers and businesses, and we said that in 4 months the retail price of fuel would be back at the same level, said Perdikes.

Source: The Financial Mirror