New law brings gas prices down

Fuel prices fell by 6 cents on Tuesday in the Republic of Cyprus, just days after the House approved new legislation to ease the burden of many consumers who sought cheaper gas in the north.

A bill proposal sponsored by ruling party DISY and centre opposition party DIKO was passed in the House earlier this month, bringing post-VAT consumer prices down by 6 cents for petrol, diesel fuel, and kerosene.

The new legislation basically changes the formula for calculating the consumption tax, which was set at 50 euro per kilolitre or 0.05 cents per litre. Prices at the pump in gas stations throughout the Republic are expected by law to fall 6 cents as a result of the new legislation going into effect, according to the government’s Consumer Protection Agency.

According to Kathimerini Cyprus, a consumer price index listed the cheapest gas price at 1.118 and the most expensive at 1.329 for regular unleaded petrol 95 octane. Diesel Fuel was recorded with lowest price at 1.194 and highest at 1.375.

Finance Minister Harris Georgiades, who gave his blessing for making use of some surpluses to ease the burden on private citizens, initially wanted to reduce the tax on the interest of deposits. But DISY and DIKO showed preference to a tax reduction on fuel.

In recent months, reports in the south revealed that a great number of Greek Cypriots were crossing into the north in droves to fill up their cars with cheaper gasoline, often causing bumper-to-bumper traffic at Agios Dometios/Metehan in Nicosia.

Some gas station owners in the south blamed higher prices on taxation in the Republic of Cyprus, saying that many taxi drivers would pull up at the pump to put a few euro worth of gas and then fill up later in the north at lower Turkish Cypriot prices.