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12° Nicosia,
29 February, 2024
 
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Double impact on gas station owners

Government decision to end fuel tax reduction sparks public discontent

Ioanna Kyriakou

Citizens are in turmoil following the termination of reduced special consumption tax rates on transportation and heating fuels, which resulted in increases of 8.32 cents in gasoline and diesel, and 6.83 cents in heating fuels.

The decision to end the subsidy was made during a meeting of the Council of Ministers, and according to Finance Minister Makis Keravnos, all the data was taken into account, and the continuation of the measure was not justified. However, citizens expressed their dissatisfaction with the decision, demanding a halt to the fuel price hikes.

President of the Association of Gas Station Owners, Savvas Prokopiou, spoke to "K" about what to expect in the coming period, mentioning "instant" reductions in fuel prices. When asked to comment on the statement made by the President of the Cyprus Consumers Association, Marios Drousiotis, on state radio, that there may be a 3-cent decrease in fuel prices in the near future, Mr. Prokopiou clarified that reductions are expected, but the exact amount cannot be accurately estimated.

He explained that there was a decline in oil prices globally in the previous days, but they have since returned to the levels they were at 15 days ago, namely over $70 per barrel. Therefore, there will be "some momentary reductions in prices," he claimed.

When asked if there would be chain increases in other products after the termination of the fuel subsidy, he responded that it is something we cannot know. "Fuel prices fluctuate, but when prices of other products, such as consumables, increase, it is difficult for them to decrease," he noted.

Mr. Prokopiou stated that after the protest by gas station owners regarding the supply and trade of fuel from the occupied territories, he expected the reduction in consumption tax to remain. He emphasized that every increase in fuel prices has a double impact on gas station owners. As he explained to CNA a few days ago, each increase in fuel prices represents an additional cost for gas station owners because for every cent increase in fuel prices, the cost we incur for purchasing fuel increases by €1,000. This means that gas station owners will need additional working capital, he pointed out.

[This article was translated from its Greek original]

TAGS
Cyprus  |  fuel  |  price  |  economy

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