Freeze on fuel tax to be extended

As fuel prices start to rise after reaching their lowest ebb for a year, the outgoing government is considering extending a freeze on consumer tax at the pumps.

In comments to Omega TV, government spokesperson Marios Pelekanos said the Cabinet would discuss the matter during its last meeting next Wednesday before handing over the keys to President-elect Nikos Christodoulides.

He confirmed that the government would consider prolonging the reduced consumer tax on fuels for another two months.

The freeze was introduced last March to buffer a hike in fuel prices, powered by the war in Ukraine and sanctions on Russia.

These reduced rates were initially to be valid until June 2022 but were extended until 15 January 2023, with a reduction of 7 cents per litre in the price of petrol, 8.3 cents for diesel and 6.4 cents for heating oil.

The cost-of-living measure was again extended until 1 March.

The head of the Cyprus Consumers Association, Marios Drousiotis, said the two-month extension would protect Cypriots against expected petrol increases.

Meanwhile, on Thursday, the lowest price for a litre of Octane 95 petrol in the capital was €1.323 compared to 1.299 in January.

An average increase of 2 to 3 cents per litre was recorded in the price of Octane 98 Unleaded, except for Famagusta and Paphos.

Diesel also saw increases, with the highest prices recorded in Limassol and Famagusta.

Limassol residents with vehicles running on diesel are paying a higher price than those in other districts, with prices fluctuating between €1.556 and €1.617 per litre from €1.549 — €1.599 last month.

The cheapest Diesel in Famagusta was €1.568 per litre compared to €1.561 per litre last month.

In Paphos, the lowest diesel price increased to €1.569 per litre from €1.567 per litre in January.