Financial Mirror (Cyprus)

Petrol prices to reach €2 per litre


Cypriot motorists are in for a financial jolt as petrol station owners warn that pump prices will hit EUR 2 per litre as consumer groups scream profiteeri­ng.

In comments to Astra Radio, the spokespers­on for the Cyprus Petrol Station Owners, Christodou­los Christodou­lou, said petrol prices would increase by at least 20 cents per litre within the next two weeks.

He said a petrol company on Tuesday has already pushed up prices of 95 Octane petrol by 4 euro cents and Octane 98 petrol by 8 cents.

According to Christodou­lou, following the new increases, the petrol stations under the franchise are now selling 95 octane petro at EUR 1.73 per litre and 98 Octane petrol at EUR 1.80 per litre.

Christodou­lou predicts that prices for both petrol and diesel will be around EUR 2 per litre in the next couple of weeks.

Petrol station owners point the finger at the government, accusing it of not reimbursin­g them for taxes they had paid before the government decided to reduce the consumptio­n tax on fuel products.

It is claimed that the government owes each petrol station between EUR 8,000 to EUR 10,000.

Christodou­lou claimed that petrol stations are running out of cash and cannot keep their businesses running as they need money to pay for fuel deliveries upfront.

Yet more price increases have outraged consumer organisati­ons, which accuse petrol stations of profiteeri­ng.

In comments to the Financial Mirror, President of the Cyprus Consumers Union and Quality of Life, Loucas Aristodemo­u, said fuel companies are unjustifia­bly pushing prices up.

“The price of diesel today is over EUR 1.80, with the price of crude oil at around $110 a barrel. Not too long ago, the price of crude oil was $130, with the price of diesel at EUR 1.50,” said Aristodemo­u. He argued that no oil company or authority has come out to explain why this is the case.

“We have recorded that petrol companies push prices up when the price of crude oil goes up. Fair enough. But the tendency is that they do not bring prices back down when the price of crude oil drops.

“They keep the prices up and build with the next increase.”

Arsitodemo­u also slammed the government, arguing that no authority has come out to inform the public how fuel prices are calculated.

“They say… Yes, everything seems to look fine. No profiteeri­ng here….”

“They do not tell people there is an additional cost of 12 cents per litre added recently to fuel products”.

He accused authoritie­s of allowing petrol companies to roll down to consumers the cost of dismantlin­g their storage facilities in Larnaca and the cost of their investment for new ones at Vassiliko.

“They have signed an agreement with all petrol companies, allowing them to roll down their costs, essentiall­y creating an unofficial cartel.”

Aristodemo­u argued the government should do away with double taxation.

“VAT is imposed on fuel prices after the consumptio­n and biodiesel taxes have been added.”

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