-
.
- Русский
The price of petrol will soon decrease by approximately 3 cents per litre, just days after an additional 8.3 cents per litre was added on petrol, the president of the Cyprus Consumers Association Marios Droushiotis said on Monday.
The reason is a drop in the price of oil internationally which will partially offset cabinet’s scrapping of the reduction in VAT on fuel last week.
The average fuel prices now stand at €1.47 per litre of 95 octane, €1.49 for diesel, and €1.04 for heating oil.
Cabinet also tightened subsidies on electricity bills, a move which is likely will cost the average household about €70 every two months.
“The scrapping of the subsidies was expected,” Droushiotis told the Cyprus Mail. “Since last summer, the price of fuel has decreased, so there was no justification for the government to extend the subsidies.”
Droushiotis said that despite an immediate spike in the cost of 95 octane, diesel and heating oil with the end of the VAT susbidy, the trend will show a slight downward trajectory.
“Early signs point towards a slight reduction in the price of fuel, about 3 cents per litre in the next few days,” he said.
He added that prices are likely to decrease even more throughout the summer, “although we cannot be sure for the time being.”
Droushiotis added that the scrapping of the subsidies might not necessarily translate into a chain reaction of price increases in other products, despite the cost-of-living crisis in Cyprus and abroad.
“That said, the government must make sure that the additional levies are also used to help those in need,” he said.
Moreover, he said that the benefits of the reduced rate of VAT on fuel were not fully felt by consumers, but added that they were certainly beneficial.
Last week, Finance Minister Makis Keravnos said future electricity bill subsidies will be geared to vulnerable households and farmers who use pumping stations to water crops.
Vulnerable groups include those receiving Guaranteed Minimum Income, disabled persons, those unable to work, single parents, those with large families, people who receive disability pensions and the unemployed.
Responding to a question on criticisms against the government from the opposition which maintained that state finances could have allowed for the fuel subsidies to continue, Keravnos said: “I believe we are better placed to know the situation of our public finances.
“It was clear from the onset that these would be temporary, and would expire at the end of June,” he said.
Contents of this article including associated images are belongs Cyprus Mail
Views & opinions expressed are those of the author and/or Cyprus Mail
Source
