Government urged to refund fuel tax bonanza

With fuel prices at record highs and rising, which in the process also nets the government more revenue, more and more organisations, political parties, unions and special interest groups have intensified their calls to the government to reduce the fuel tax.

The government meanwhile says the fuel tax imposed in Cyprus is at the minimum of the EU, with Minister of Commerce George Lillikas adding that “there is not much that we can do.”

However, he has promised to look into accusations made against the petrol companies that they are profiteering from the price hikes at the expense of the population.

The Employers’ and Industrialists’ Federation (OEV) said that the dramatic increase in oil prices had caused serious problems for those companies who had been contracted for a fixed fee before the fuel increases. OEV noted that some companies have had to sell their services below cost so that they do not lose their clientele.

“The government needs to take immediate support measures for these enterprises like the setting of prices for fuel, since fuel is consumed [in these enterprises] at the same level as in agriculture.”

Meanwhile, the trade union PEO is asking the government to increase inspection over how petrol stations set their petrol prices so as to minimise profiteering. The union also noted that the inspection should not be limited only to petrol companies, since crude oil price increases have led to exaggerated price increases in all goods.

The Cyprus Consumers’ Union also issued a statement in which it criticised the government for a lack of oversight over local petrol companies, which it views are taking advantage of the increase in crude oil prices and inflating their prices.

Unleaded 98 Octane Petrol is up 30% at 59 cents per litre, 95 Octane is up 27% at 57.1 cents per litre and the diesel is up 28% at 53.8 cents per litre since the start of the year.