**Fuel Price Hikes Cost Consumers an Extra €23 Million in Six Months**
Consumers in Cyprus have faced a significant financial burden over the past six months due to rising fuel prices, amounting to an additional €23 million. This figure, reported by the Cyprus Consumers Association, includes approximately €4 million in value-added tax (VAT) levied on these price increases. The analysis encompassed the prices of 95-octane petrol, diesel, and heating oil, and was part of a broader study examining retail fuel prices in the country over a four-year period.
The report highlighted that Paphos consistently recorded the highest average prices for all three fuel types throughout the 2023-2026 period. In contrast, Nicosia enjoyed the lowest average prices in every year except for 2024. The findings also revealed that Famagusta had the smallest price differential within a district, while Nicosia exhibited the largest variation.
The Cyprus Consumers Association expressed concerns regarding the pricing structure in Nicosia, suggesting that the data warranted a more in-depth investigation to understand the underlying factors influencing retail fuel prices. Despite the variations in pricing across districts, Nicosia was the only area where average prices remained below the national average, while other districts reported prices above this benchmark, with the exception of 2024.
The association's study also took into account fuel sales and price fluctuations over the past six months. Since the onset of the conflict in the Middle East, the price of 95-octane petrol has surged by 31.6 cents per litre, diesel by 47.7 cents, and heating oil by 56.2 cents. By analyzing the total volumes of these fuels sold from March to August, along with the average monthly prices, the association calculated that consumers had collectively paid an additional €23 million due to these price hikes.
In light of these findings, the association indicated that there are signs necessitating further investigation into the mechanisms that dictate retail fuel prices. They emphasized the need for a comprehensive review to ascertain the factors contributing to these increases.
In response to the ongoing situation, Energy Minister Michalis Damianos acknowledged the challenges consumers face and stated that there are measures available to help keep fuel costs as low as possible. He noted that decisions regarding these measures would need to be finalized by September 17.
Finance Minister Makis Keravnos also addressed the issue, announcing that the reduction in fuel consumption tax would be extended for an additional one or two months. This extension aims to maintain the current level of tax reduction, with the new measure expected to take effect on September 18, pending approval from the cabinet and parliament.
As consumers continue to grapple with rising fuel costs, the government's response and potential regulatory measures may play a crucial role in addressing the financial strain experienced by households across Cyprus. The ongoing discussions among government officials and consumer advocacy groups underscore the importance of transparency and accountability in the fuel pricing system.