FUEL increases were put on hold yesterday after the government bowed to pressure from farmers’ unions who vehemently oppose any increases unless some sort of arrangement is made to compensate them.
The government was ready to submit to the House the regulations concerning the increases but the official carrying the hefty documents was turned back as soon as she set foot in the building after it had been decided to postpone any discussion at the House until next week.
The decision was made during an afternoon meeting between party leaders and Trade and Industry Minister Nicos Rolandis.
After the meeting, Rolandis told reporters that the government would wait a week before submitting the regulations, giving time to parties and farmers’ unions to iron out some sort of agreement.
Rolandis said the week was needed to decide on the amount of the increases and the compensation that would be given to farmers for the fuel they use for farming purposes.
The government was looking to raise fuel prices by four cents, an amount that would cover the £12 million paid by the government in subsidies to petroleum companies.
The one week delay would cost the government £800,000, Rolandis said.
Around 100 farmers gathered outside the House yesterday morning protesting about the planned increases.
Farmers’ unions oppose any increase in fuel prices, demanding state subsidies for fuel used in farming.
The union leaders, who were heard by the House Agriculture Committee, urged deputies not to vote for the increases, saying that any “increase and price liberalisation would have destructive consequences for farming in general”.
The unions rejected a government proposal to increase pump prices by three cents per litre and distribute two to three million pounds back to the farmers in the form of grants.
Committee Deputy Chairman Yiannakis Thoma assured farmers that they had the support of all its members adding that fuel increases could be the final blow for farmers, considering the many and long-standing problems they were faced with.
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