The reduced, by 1 cents per litre, consumption tax on fuel (petrol 8,3 and diesel) and by 95 cents on heating oil ends on April 6,3st.
In statements to KYPE, the Director of the Consumer Protection Service of the Ministry of Energy, Trade and Industry, Konstantinos Karagiorgis, said that at midnight on the last day of the current month, "the return of the consumption tax on fuel is expected" and added that this means that gasoline 95 and diesel will be taxed at 8,3 cents per liter and heating oil at 6,3 cents per litre.
According to Mr. Karagiorgis, the first data in the fuel sector is that "in the last quarter there was a significant reduction in fuel prices which stopped two weeks ago" and was followed by a stabilization of prices, while "in recent days we see a lot small increases in the fuel sector'.
The second fact, he continued, is that "today Cyprus, based on the European Price Observatory published by the EU, has the cheapest fuel in Europe".
Removal of VAT subsidy in 11 product categories
Regarding the abolition of the VAT subsidy and the return of VAT to 11 specific categories of products, Mr. Karagiorgis said that for the 9 categories the VAT will be reinstated on April 30 and for the remaining two categories concerning meat and vegetables, the VAT will be reinstated on May 31.
Green taxation
Regarding the green tax reform bill, the Director of the Consumer Protection Service told KYPE that the public consultation on the bill was recently completed and "it is expected that the specific taxation will be introduced in 2024" and added that, as announced by the Minister of Finance, the specific taxation will be accompanied by compensatory measures decided by the Ministry of Finance.
According to the procedure followed, after the completion of the consultation on the bill, it will be taken to the Council of Ministers for approval and then submitted to the Parliament for discussion and voting.
Besides, in statements to KYPE, the President of the All-Cyprus Association of Petroleum Dealers, Savvas Prokopiou, said that the end of the reduced consumption tax on fuel "comes at a very difficult time because at the same time we expect the burden on the retail price of fuel from the imposition of green taxation" .
"So consumers, as well as our own businesses, will soon, within ten days, be burdened with an extra cost of about 14 cents which is very significant on top of the existing price," he said, adding that the total increase would amount to around 10%
Also, Mr. Prokopiou said that the cost for the gas station owners is double because, as he explained, in addition to the fact that "we are also consumers, we are forced to put 2.000 euros out of our pocket - about 1.000 euros for our stocks and about 1.000 euros for our monthly customers – for every one cent increase in fuel prices.”
In addition, the President of the Association said that the situation with prices becomes even more difficult when the retail price exceeds 1,50 euros per liter, as consumers from this point give more importance and as a result this price is "also an issue psychology and pocket".
He said that the price of diesel with the end of the reduced VAT rate will exceed 1,50 euros per liter.
Letter to the Ministry of Finance to change prices on a working day
Regarding the subject of price fluctuations, Mr. Prokopiou told KYPE that the association has sent a letter to the Director General of the Ministry of Finance requesting that "the fluctuations (in prices) take place on a working day and not on a holiday, and on the 6th morning of the first working day after their decision" and this for the reason, as he said, that "it is practically impossible for someone to go to their gas station at midnight to change the prices".
"6 a.m., the time when we open our gas stations, must be implemented," he added.
He added that the existing legislation states that the change in fuel prices must be done at midnight the previous day but that at some point has to change.