The Ministry of Energy, Trade and Industry is vigilant and is ready to intervene wherever and whenever any violation is found in relation to fuel prices, stressed the competent Minister Natasha Pileidou in a reply letter to AKEL Secretary General Stefanos Stefanou, noting that the evidence before the Ministry does not justify a cap.[/B]
In her letter, Ms. Pileidou noted that the position expressed by Mr. Stephanou that the fall in fuel prices in the retail market does not reflect international reductions, "is not based on factual data based on both our recent and longitudinal audits, as well as studies conducted by the University of Cyprus on the basis of data requested by the Consumer Protection Service."
"In Cyprus, a small market with the only route being the sea supply of cargoes of finished oil products, which usually do not exceed two to three per month, international reductions, or even increases, are reflected with a time lag," said Mrs. Pileidou, adding that "it is for this reason that the erroneous perception, which you also express in your letter, that there is a delayed decrease in fuel prices, which is not evidenced by our checks, prevails."
The Commerce Minister said that the Government immediately demonstrated the necessary political will and, in an effort to limit the increase in fuel prices, proceeded, on March 3, 2022, to reduce the excise tax on fuel. In this way, the first wave of fuel price increases was significantly limited. In particular, the Council of Ministers decided to reduce the excise tax on unleaded petrol and diesel by 8.3 cents per litre and 6.39 cents per litre for heating oil (including VAT). "In this way, the excise duty has been reduced to the minimum permissible level in accordance with the relevant European Directive," she added. Pileidou noted that the prices of the Platts Basis Italy index, the index used to price finished refined products imported into Cyprus, "resulted in the new more expensive fuel cargoes received in Cyprus offsetting the reductions in excise duty".
She also pointed out that there was a big increase in the prices of petroleum products in other EU countries as well.
According to Ms. Pileidou, at this stage, what the continuous checks of the Ministry of Energy, Trade and Industry record is that average fuel prices in Cyprus before and after tax are lower than in Europe and cheaper than in many other European countries.
In her letter, the Minister of Commerce presents graphs showing that Cyprus, based on data as of 14 March 2022, is ranked as the third cheapest country on 95 octane unleaded (including tax), the sixth cheapest on diesel and the fourth cheapest on heating oil among the 27 EU countries.
He noted that retail prices of oil products in Cyprus are affected by a significant number of factors, such as the import price of the products, the stocks held by oil companies at the time of importing the fuel and the exchange rate of the dollar against the euro. "All of the above have been significantly disrupted recently by both the effects of the pandemic and the war in Ukraine," he added.
Finally, he pointed out that an important parameter in determining the price of motor fuels is the tax imposed on fuel, which is said to account for about half of the retail price. "For the latter, as indicated above, the government has proceeded to reduce the excise tax in order to curb the negative effects due to the war."
Source: CNA
Contents of this article including associated images are belongs Cyprus Times
Views & opinions expressed are those of the author and/or Cyprus Times
Source
